What is an endorsement in insurance?

An endorsement in insurance is an amendment to the policy that modifies coverage. This means that it is a formal change made to the original insurance policy that can either enhance or restrict the coverage provided. Endorsements are often used to add new coverage, alter existing coverage limits, change deductibles, or exclude certain types of risks.

For example, if a homeowner wants to include coverage for a home office in their property insurance, an endorsement can be added to the policy to reflect this change. Similarly, if an insured party decides to exclude coverage for certain high-value items, an endorsement would document that limitation.

The other choices provided define different elements of an insurance policy but do not accurately describe what an endorsement is. A summary of the policy's terms serves to outline the key elements but does not modify coverage. A declaration specifies who is covered under the policy instead of altering it. A denial of coverage statement, on the other hand, indicates that a claim is not covered under the terms of the policy and does not relate to modifications or endorsements.