Endorsements, and how to spot a removed one

What an endorsement is, where it is listed, and how a missing one shows when you put two terms side by side.

Terms in this guide

Tap a term to read what it means.

Endorsement. A change to the standard policy that adds, removes, or adjusts coverage. Endorsements are listed by form number and name on the declarations page or a schedule attached to it.

Water backup endorsement. An add-on that covers water coming up through a drain or sump pump. A standard home policy often leaves it out, so it is listed on its own line when it is there.

Replacement cost. The policy pays what it costs to replace an item with a new one of like kind. Actual cash value, the other common option, takes off for age and wear first.

Rental reimbursement. Pays toward a rental car while yours is in the shop for a covered repair, up to a daily amount and a number of days. When it is removed, the line disappears or reads "not included".

Declarations page. The summary page at the front of a policy: who and what is insured, the term dates, each limit and deductible, the endorsements, and the premium. A new one comes with every renewal.

An endorsement is a written change to a standard policy. It can add coverage the base form leaves out, take some away, or adjust how a line pays. A policy is the main form plus every endorsement attached to it, so the list of endorsements is part of what you bought.

Endorsements are also the part of a policy most likely to change without anyone noticing. A removed one leaves no gap you can see on the page. It simply is not listed anymore.

Where endorsements are listed

On most declarations pages there is a section called forms and endorsements, or a schedule attached to the page. Each entry has a form number, often with an edition date, and a name. Some also show a limit or a premium of their own.

Carriers use their own form numbers, and many use standard industry forms as a base, so the same kind of endorsement can have different numbers at different companies.

What they tend to do

On a home policy, endorsements that add or broaden coverage include:

Water backup, for water coming up through a drain or sump.
Replacement cost on personal property, in place of actual cash value.
A schedule for valuable items like jewelry, each with its own listed value.
Service lines or equipment breakdown.

Endorsements that narrow coverage

Others limit or change coverage. A roof endorsement may pay for an older roof on a schedule or at actual cash value. A cosmetic damage endorsement may change how hail marks on siding or a roof are handled. State forms adjust wording to fit local law. On an auto policy, optional coverages like rental reimbursement and roadside assistance often appear as their own lines.

Whether any of these applies to a given loss is a question for the carrier, because the answer is in the form's wording.

How a removed one shows

Read on its own, this term's page looks complete. The only way to see that something left is to compare it with last term's. Line the two lists of forms up and look for three things: a form that was there and is gone, a new form you did not ask for, and the same form name with a different edition date, which can mean the wording changed.

Look at the premium lines too. An endorsement with its own premium leaves two traces when it is removed: the form and its charge. Many states require carriers to send a notice when coverage is reduced at renewal, often as a separate page in the packet. That page is easy to set aside, and worth keeping with the declarations page.

ExampleThe forms list from two terms of a home policy

Form	Last term	This term
Homeowners special form	Listed	Listed
Personal property replacement cost	Listed	Listed
Water backup, $5,000	Listed	Removed
Scheduled personal property	Listed	Listed
Roof surfacing payment schedule	Not listed	Added

Example numbers. One endorsement was removed and one was added, while the list stayed the same length. Counting lines would miss both.

Questions to ask your carrier or agent

If the forms list changed, your carrier or agent can say what each change means for your policy. Questions to start with:

Which endorsements were added, removed, or replaced with a new edition this term?
Was a reduction in coverage notice sent with this renewal?
What does each new form change compared with last term?
Did the premium for any endorsement change?
Is an endorsement that was removed still available?

Next renewal, side by side

Halfstone puts this term's declarations page next to last term's, line by line, with a plain note on each line. A changed number or a missing form is easy to see before you call. See a Renewal Review, or start free with the policy that renews next.