What Is an Insurance Endorsement?

A standard insurance policy may not include all the types of coverage you desire, or come with limits that are high enough to accommodate your needs. Fortunately, you can often modify an insurance policy by adding an optional endorsement, which may also be called a rider. 

Endorsements or riders are used to expand your policy's coverage, such as to different types of property, or to increase your limits in a certain category. You can add endorsements or riders to many different types of insurance policies, including homeowners insurance, auto insurance, and business insurance.

If you're thinking of adding an endorsement to any of your insurance policies, your independent insurance agent can help. Your agent can help you determine which specific endorsements are necessary to give you the additional protection you need. Until then, here's a closer look at insurance endorsements and how they work.

Table of Contents

What is an insurance endorsement?
What is an insurance floater?
What's the difference between endorsements and floaters?
Do insurance endorsements have deductibles?
How long are insurance endorsements valid?
How does a mortgage company endorse an insurance check?
Expert(s) who answered

What Is an Insurance Endorsement?

An insurance endorsement is an addendum (i.e., an addition or change) to an insurance contract or policy. All insurance is based on contracts in which you sign up to pay premiums and follow certain terms in exchange for your coverage. 

The insurance company agrees to pay to cover situations like vehicle or personal property damage if they occur because of a listed peril. An endorsement is just a modification or extra piece added to that contract.

An additional insured endorsement is used to extend the policyholder's coverage to another named individual on the policy. This type of endorsement increases your policy's liability coverage, allowing the added insured individual to sue a third party if they have charges filed against them. An additional insured endorsement example would be in the case of renters insurance when the policyholder's landlord requires themselves to be added to the tenant's policy.

An endorsement found in an insurance plan is added before you sign or renew your policy. It's not added while your policy is already in force. If you have questions about what endorsements are in your policy, an independent insurance agent can go over the policy with you before you sign it and even help provide you with the additional insured endorsement form.

Examples of insurance endorsements:

• Peak season endorsements: These allow you to temporarily increase coverage during the peak season for your business, such as summertime for vacation-oriented businesses or Christmas for retail businesses.
• Conditional endorsements: These specify conditions that need to be met before you’re fully covered. For example, protective safeguards endorsements, which are mostly seen in commercial lines, make maintaining protective safeguards (e.g., sprinklers) a condition of coverage.
• Title insurance endorsements: Your home title is the legal document that officially declares that you own your home. These endorsements extend standard title insurance's coverage through modifications or exceptions, or through the addition of extra coverages.
• Clarifications: Some endorsements exist to help make the contract clearer. They may specify coverage you didn’t know you had or otherwise make things easier for you. 

Homeowners insurance endorsements:

• Home business insurance coverage endorsements: These allow you to extend coverage to business-related losses if you run a business out of your home. These losses are typically otherwise excluded by a standard home insurance policy.
• Sewer backup coverage endorsements: These allow you to extend coverage under your home insurance to disasters related to a sewer or sump pump break, failure, or backup. These disasters are typically otherwise excluded by a standard home insurance policy.

An independent insurance agent can help you complete homeowners insurance forms and find any endorsements you need to add extra coverage to your policy. They can also help you modify the individual named insured endorsements listed on your policy. 

What Is an Insurance Floater?

An insurance floater is the same as an insurance endorsement, just with a different term. Just like an endorsement, an insurance floater is a modification to your insurance contract that clarifies, adds, or subtracts coverage.

The term “floater” has its origins in inland marine insurance, so you'll likely see coverage enhancements for this type of policy referred to as floaters instead of endorsements. Inland marine insurance is designed to cover equipment that moves, or “floats,” around, such as an expensive camera or a golf cart.

What's the Difference Between an Insurance Endorsement and a Floater?

The only difference between insurance endorsements and insurance floaters is the name. They both mean the same thing, essentially. They’re just an addition to your insurance contract that’s intended to clarify coverage.

You’re more likely to see the term “floater,” as opposed to “endorsement,” in reference to covered property that moves around. For example, floaters that cover valuable belongings prone to theft, like fur coats, precious metals, or fine jewelry, are common in homeowners insurance.

Which term is used depends on what type of insurance you’re dealing with. For example, in life insurance, an insurance endorsement is typically called an insurance "rider" instead. If you have questions about what endorsements, floaters, or riders are included in your insurance policy specifically, you can speak to an independent insurance agent for an expert opinion on your situation.

Do Insurance Endorsements Have Deductibles?

Sometimes, adding an endorsement, rider, or floater to your insurance policy can allow you to choose a lower deductible or additional coverage with no deductible. This often applies when you add coverage for scheduled personal property items, such as valuables. For belongings that aren't scheduled and that fall under your policy's standard coverage limit, your deductible will still apply.

How Long Are Insurance Endorsements Valid?

Typically, an insurance endorsement remains in effect throughout the lifetime of your policy. You can also usually renew your endorsements when renewing your policy. 

However, in certain cases, an endorsement or rider may only be effective for a limited term. If this applies to your coverage, it would be specified in your policy. Your independent insurance agent can help you review your coverage to be certain of how long your endorsements are valid.

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How Does a Mortgage Company Endorse an Insurance Check?

If you need to get an insurance check endorsed by your mortgage company, you'll want to contact its loss draft department ASAP. From there, a professional can fill you in on your specific mortgage company's process for getting your insurance check endorsed. Since the process varies slightly by company, you'll need to speak with someone at your mortgage company to be certain of how things will proceed.

For a Bank of America insurance check endorsement or a Wells Fargo insurance check endorsement, contact the respective loss departments of your financial institution. The contact numbers should be listed on your paperwork, or you can find them on the merchant's website.

If you have further questions about insurance claim check endorsements, talk to your independent insurance agent. They should be able to point you in the right direction of where to find what you need to get the process moving.

An Independent Insurance Agent Can Help You Add Insurance Endorsements

When you want to modify your existing insurance policy or add more coverage, no one's better equipped to help than an independent insurance agent. Your agent can help you review your existing coverage and add more protection in any category you like. 

They can help you update your policy at any time during the term and cancel or update your coverage when necessary. And if you ever need to file an insurance claim, your agent can help you with that, too.