What is the purpose of an 'insurance policy endorsement'?

An insurance policy endorsement serves the important function of modifying the terms of a current insurance policy, which can include both expanding and limiting coverage. Endorsements may be used to add additional protections that were not included in the original policy, such as adding more coverage for specific items or events, or changing the limits of coverage based on the insured's needs. They can also rectify oversights or adapt the policy to new circumstances that have arisen since the initial underwriting, ensuring that the policy remains relevant and effective.

In contrast, cancelling an existing insurance policy would generally require a different process and documentation, while providing a summary of policy details does not reflect the active modification of coverage. Addressing pre-existing conditions is typically outside the scope of an endorsement; these issues are usually handled during the underwriting process or through specific policy terms. Understanding how endorsements function enables policyholders to customize their coverage effectively and ensures they have the necessary protections in place.