In property insurance, what does "endorsement" mean?

In property insurance, "endorsement" refers to an amendment or addition to a policy that changes the coverage originally provided by the policy. Endorsements can enhance, restrict, or clarify the terms of the insurance coverage. For instance, an endorsement might be used to add additional insured parties, increase coverage limits on certain items, or modify the exclusion of certain risks.

This flexibility allows policyholders to tailor their insurance protection to better meet their specific needs and circumstances. As a result, endorsements play a crucial role in customizing insurance coverage, ensuring that it aligns with the current risks and requirements of the insured party.

The other choices do not accurately define endorsements. A legal term for policy cancellation pertains to terminating a policy rather than modifying it. An insurance claim refers to the request for payment based on covered loss or damage, and a standard term for lower coverage levels does not address the concept of endorsements as a modification or addition to an existing policy.