Property claims glossary
What is an endorsement chain?
An endorsement chain is the full set of endorsements on a policy, read together, to see which amendment controls a given loss and what is left of the base coverage. Endorsements can modify the base form and each other, so reading any one in isolation can give the wrong coverage answer.
Worked example · fictitious claim
The base form pays the roof at replacement cost, one endorsement settles roof surfacing at actual cash value, and another adds a 2% wind/hail deductible on a $300,000 dwelling limit, or $6,000. Read together, a $16,000 hail roof replacement with $8,000 of depreciation pays $16,000 − $8,000 − $6,000 = $2,000. Reading the base form alone, with a $1,000 flat deductible, would suggest $16,000 − $1,000 = $15,000 in the end.
How it affects a settlement
The chain decides the settlement basis, the deductible and any sub-limits, so it sets both the amount and the timing of payment. Read in full, it is often the difference between a correct check and a large error in either direction.
In practice
The layered sequence of endorsements as they apply to a specific policy and peril: which amendment overrides which, and what remains of the base promise once all layers apply. Following the chain correctly is the difference between reading the policy and understanding it. ClaimVision resolves the chain and shows the reasoning.
Related
Endorsement · Coverage determination · Policy coverage checking · property claims glossary