What are endorsements in insurance policies?

Endorsements in insurance policies are specifically defined as amendments or additions that modify the original terms of the policy. This means that they can adjust coverage limits, add additional coverage, change the scope of coverage, or clarify the policy language to better fit the needs of the insured. Endorsements serve as a way to customize an insurance policy to better align with an individual's or business's specific circumstances or needs, providing more tailored protection.

In this context, the correct answer highlights the flexibility of insurance policies, allowing them to evolve through endorsements to meet changing situations or requirements for both the insurer and the insured. This can include various scenarios like adding new property, adjusting coverage for an increased risk, or clarifying exclusions to ensure both parties have a mutual understanding of the policy's provisions.