Endorsement (Rider)
Definition:
A change or addition to an insurance policy that modifies coverage.
Explanation:
Endorsements can add coverage for excluded items, change limits, or clarify terms. They are common for jewelry, sewer backup, or ordinance and law coverage.
Example:
Adding a sewer backup endorsement ensures coverage for damage from a backed-up drain, which is usually excluded otherwise.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.