What Is Insurance/Rider Endorsement?

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What Is Insurance/Rider Endorsement?

<lingo>An insurance or a rider endorsement refers to official changes made to the original insurance policy. This may be done to add or limit coverage, depending on the individual circumstances of the property owner. Most insurance policies are designed to be flexible enough to fit the direct needs of the client. 
As time goes by, it's inevitable that the homeowner's expectations will change for their property. This feature gives people the means to pay for the coverage they want based on both legal statutes as well as their own priorities. For example, they may drop certain coverage once a loan is paid off because they're no longer required to have it.</lingo> 

Insurance/Rider Endorsement Explained

There are two types of amendments that homeowners should know. One is an official policy change and is typically referred to as an insurance endorsement. In this case, the insured party receives substitute policy documents (replacing the original paperwork) which will then remain in effect until the policy's expiration date. 

 

The other kind is typically referred to as an insurance rider. A rider will not alter the original policy's terms and conditions. It will only add terms to the policy or clarify how certain events will be treated by the insurance company. This add-on document should be kept with the original policy paperwork. 

 

<twitter>An insurance or a rider endorsement refers to official changes made to the original insurance policy. This may be done to add or limit coverage, depending on the individual circumstances of the property owner. </twitter>

 

 

Homeowners typically have more reasons to adjust their policy than they realize. A single home improvement project can easily push the value of their home outside of its original policy limits. An endorsement gives owners the insurance they need in case the new work is damaged or destroyed. This option also gives homeowners the chance to specify the worth of certain items. 

 

For example, let's say you spend hours every weekend restoring the original baseboards of the home. The perceived value of those baseboards will skyrocket in your mind because you've invested so much time in getting them up to par. Depending on your insurance company, you may be able to receive a rider that covers both the actual and the perceived value of the baseboards in case of property damage. 

 

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