What is an insurance policy "endorsement"?

An insurance policy "endorsement" refers to a modification or addition that changes the policy's coverage. This means it can either add new coverage, remove existing coverage, or amend the terms of the policy. Endorsements are important because they allow policyholders to tailor their insurance policies to better fit their specific needs or circumstances, ensuring they have the right protection in place.

For example, if a homeowner wants to add coverage for a newly acquired valuable item, they would use an endorsement to include that item in their existing policy. This flexibility helps ensure that the coverage remains relevant as the policyholder's situation changes.

The other options describe different concepts that do not accurately represent what an endorsement is. A legal violation in an insurance claim does not pertain to the modification of coverage. Insurance fraud refers to unlawful practices aimed at deceiving the insurer, and assessing damage during a claim is the process of evaluating the extent of loss but is not related to policy modifications. Understanding endorsements is crucial for both policyholders and adjusters, as they are key elements in managing and facilitating insurance coverage effectively.