An endorsement in the context of insurance is a written document attached to an insurance policy that modifies the policy by altering, adding, or subtracting coverage terms. It serves as an official amendment to the original insurance contract. Endorsements are used by insurers to address specific needs of the policyholder that are not covered in the standard policy. They can be issued during the policy term, at the time of purchase, or at renewal and they can either expand or restrict the benefits payable under the policy. For example, an endorsement may provide additional coverage for items not typically covered, such as high-value jewelry, or it may exclude coverage for certain perils or locations. Since endorsements change the terms and conditions of the policy, they are legally binding and are incorporated into the policy documentation, effectively becoming a part of the insurance contract. It is important for policyholders to understand the implications of any endorsements on their policies, as they can significantly affect coverage.
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