Insurance Basics

Endorsing an Insurance Policy



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Insurance polices can be changed and modified by using a technique called endorsing a policy. A policy endorsement can be done to change or modify coverages, add or delete items from a policy and modifies a current policy without completely rewriting it. When an insurance policy is endorsed the premium amount paid for the policy can change.





An insurance policy whether it is for a home or an automobile sometimes needs to be changed during the policy term. When an insurance policy is modified during the policy term it known as endorsing a policy. A policy endorsement can be made when a coverage limit needs to be changed in order to increase or decrease the coverage limit. If an insured needs to add a new vehicle to their automobile insurance policy an endorsement is done to add the vehicle. The same is true if the replacement cost coverage of a home needs to be changed because of an addition. Insurance agents as well as insurers use endorsements on many types of policies.





A policy endorsement can also be used to add and delete items from a policy such as one for a home or automobile. Whenever an individual purchases a new vehicle, gets rid of or sells an old vehicle their automobile insurance policy will need to adjusted. The unique thing about an insurance policy is that it is flexible enough to accommodate any changes that need to be made. People that have a homeowners insurance policy sometimes schedule specific items on their policy. This can be for jewelry as well as golf clubs as well as coins. Scheduling an item on a homeowners policy is a good example of how an endorsement works.




An endorsement is a way for an insurance agent or an insurer to make a change to an existing insurance policy. This eliminates the need to rewrite the policy or create a new one. The benefit of endorsing an insurance policy is that it allows changes to be made at any time. Unlike other types of products where changes can only be made at the renewal. Without the use of an endorsement an insurance policy would need to be completely rewritten to accommodate whatever changes needed to be made. Many times a policy change or endorsement can be made over the phone or in person. Usually an insurer will never make any policy changes through the use of e-mail.




Many times when an insurance policy is endorsed the amount of premium paid for the policy is going to change. This all depends on the type of endorsement and what was changed on the policy. An change that increases coverage on a policy will usually lead to a higher premium.

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