An amendment to a property insurance policy that broadens or restricts coverage is known as what?

An amendment to a property insurance policy that either broadens or restricts coverage is referred to as an endorsement. Endorsements serve as modifications to the terms of the original insurance policy, allowing insurers to adjust their provisions based on specific circumstances or new agreements made with the policyholder. This flexibility is crucial in adapting insurance coverage to reflect changes such as additional risks, altered property value, or specific exclusions.

For instance, if a homeowner wants to include coverage for a newly constructed shed, an endorsement can be added to the existing policy to cover this additional structure. Conversely, if a homeowner decides not to insure certain high-value items anymore, an endorsement can be used to exclude these items from coverage. The use of endorsements makes them integral to effective and tailored risk management in property insurance.

In contrast, terms such as "addendum" and "appendix" typically refer to supplementary materials or documents that provide additional information but do not directly alter the original policy coverage. A "policyholder agreement" does not accurately capture the essence of a coverage adjustment since it implies a broader understanding or contract between the policyholder and the insurer rather than a specific modification of insurance terms.