Which statement is most accurate about endorsements in a property policy?

• A. It always increases premiums
• B. It never changes coverage
• C. It is always required for all policies
• D. It modifies coverage and adds protections not in the base policy

Answer: (D)

Endorsements are policy attachments that tailor coverage beyond the standard terms. They modify what is covered, how it’s covered, and under what conditions, and they can add protections that aren’t included in the base policy. For example, an endorsement can expand coverage for a valuable item, add protection for a specific peril, or adjust limits and deductibles. Because of that, endorsements are the mechanism by which the policy gains coverage the base form doesn’t provide. They aren’t necessarily required for every policy, and they don’t always raise premiums—some may be included at no extra cost while others change the price. In short, endorsements modify coverage and add protections not in the base policy, which is why that statement is the most accurate.