What is an endorsement in an insurance policy?

An endorsement in an insurance policy is specifically a written provision that adds to or modifies the coverage of the policy. This can occur for various reasons, such as the need to extend coverage limits, adjust the scope of protection, or provide specific exclusions. Endorsements allow policyholders to tailor their insurance coverage to better fit their individual needs or circumstances.

For instance, a homeowner might add an endorsement to their policy to cover specific high-value items such as jewelry or artwork that exceed standard coverage limits. In this way, endorsements serve as an important tool in customizing an insurance policy to ensure that the insured has the appropriate levels of protection.

The other options focus on aspects that do not align with the definition of an endorsement. Claims refer to requests for payment based on covered losses, deductibles represent the amount a policyholder pays out of pocket before insurance kicks in, and rate calculation methods pertain to how insurance premiums are determined rather than altering coverage provisions.