An insurance endorsement changes the standard policy terms and usually appears on, or is issued with, the policy schedule.
An endorsement is a written change to the standard terms of an insurance policy.
It may add cover, remove cover, change a condition or restrict how part of the policy works. An endorsement can apply to the whole policy or to a certain person, vehicle, property, item or risk.
Endorsements are often listed on the insurance schedule or issued with a revised schedule. They may have a number, code or short title.
The title alone may not explain the full effect. You should read the complete endorsement alongside the policy wording and other documents.
An endorsement changes the standard wording for your policy. Where it conflicts with a general term, the endorsement may take priority, depending on how the documents are written.
A home insurance endorsement could apply to a particular part of the property, an ongoing repair, a security requirement or a higher-risk item.
These are examples only. An endorsement is not always a restriction. It can also extend cover or record a change agreed with the insurer.
The Financial Ombudsman Service has considered cases where security endorsements affected theft claims. The outcome of any claim will depend on the wording, how clearly the term was shown and the individual circumstances.
An endorsement may be added:
For example, a change of vehicle, address, driver, occupation, property use or security may lead the insurer to review the policy.
Depending on the insurer and the full details, it may leave the cover unchanged, adjust the premium, add an endorsement or decide it cannot continue the cover.
The Financial Ombudsman Service explains that insurers may reassess a policy when circumstances change, although they should act in line with the contract and treat the customer fairly. Its guidance covers policy changes, pricing and renewals.
An endorsement forms part of the insurance contract. If it sets a clear condition or restriction, the insurer may take it into account when deciding a claim.
For example, a theft endorsement may require a security device to be fitted and working. If that condition was not met, the insurer may consider whether it can decline or reduce the claim.
This does not mean every breach will lead to the same outcome. The precise wording, the cause of the loss and the insurer’s rights under the policy will matter.
Clarity is also important. In one ombudsman decision, a significant theft restriction was not highlighted clearly enough. The insurer was not allowed to rely on it in those circumstances.
The FCA expects firms to communicate in a way that supports customer understanding. Its guidance on clear insurance communications says key risks, restrictions and important information should be given suitable prominence.
When you receive an endorsement, check:
Check that your revised documents are accurate. Keep the latest schedule with the endorsement and any certificate of insurance.
You should give accurate information when taking out or changing a policy. Under the Consumer Insurance (Disclosure and Representations) Act 2012, consumers must take reasonable care not to make a misrepresentation.
We arrange car insurance, van insurance and home insurance through insurers.
We can help explain an endorsement shown in your documents and how it relates to the standard wording. However, we cannot change or remove an insurer’s requirement unless the insurer agrees.
The final cover will depend on the policy, insurer and full details. Claims remain subject to the terms, endorsements, limits, conditions, exclusions and excesses.
An endorsement changes the standard policy wording. It may extend cover, restrict it or set a condition that you must meet.
Read each endorsement carefully and keep it with the latest policy schedule. Ask for an explanation before relying on the cover if any wording is unclear.
