Inflation Guard Endorsement
Definition:
A policy add-on that automatically increases coverage limits to keep pace with inflation.
Explanation:
This prevents homeowners from being underinsured as rebuilding costs rise over time. Coverage is adjusted annually based on inflation indexes.
Example:
If your $300,000 dwelling coverage is increased to $315,000 due to inflation guard, you remain properly insured without updating your policy manually.
Why it matters:
This term affects how claims are handled and what payout a homeowner may receive.