Lingo watch: endorsement


An endorsement or a “rider” is an optional, written addendum to a basic insurance policy that modifies the terms of the insurance contract. Generally, an endorsement would be added to protect the insured by expanding or limiting the coverage in some defined manner. An endorsement or rider can occur at the start of a policy or can be added midterm.
Example: for a standard homeowners policy, common endorsements might include coverage for a home business, coverage for damage incurred during natural disasters such as earthquakes, floods or windstorms, coverage for property’s replacement value rather than cash value or – as discussed in a prior post – an endorsement might expand coverage limits for valuables.
A specific endorsement may not be available from every insurer or in every state. A good insurance agent will likely inform you of any common policy options, but when discussing a specific type of insurance with your agent, ask if there are any options that would expand your coverage.