Endorsement (or Rider)

An endorsement is a formal written modification to your insurance policy that changes the terms of the base contract. It might add coverage not included in the standard policy, remove an exclusion, raise or lower a sub-limit, change a deductible for a specific peril, or add a person, property, or location to the policy. Endorsements override the base policy language for whatever they address and are a legally binding part of the policy contract.

Endorsements are how policies are customized to fit specific situations. A scheduled personal property endorsement adds full replacement coverage for high-value items like jewelry, fine art, cameras, or musical instruments that would otherwise be subject to sub-limits in the standard policy (jewelry is typically capped at $1,500 on a standard homeowners form). A sewer backup endorsement adds coverage for water damage from a draining or sewer line backing up, which is excluded from most standard homeowners forms. A home business endorsement extends liability and property coverage to business activities conducted from your residence. A ride-share endorsement fills the coverage gap during active trips on a personal auto policy.

When you request an endorsement, the carrier may require an inspection, a professional appraisal (common for jewelry or collectibles), or additional underwriting information before approving it. Endorsements increase your premium, but the added cost is almost always far less than the financial exposure they close. Review your endorsements at every renewal. If your circumstances have changed -- new jewelry, a finished basement, a side business that grew -- check whether your current endorsements still match your actual situation before a claim reveals the gap.