What is Policy Change?
A policy change is a formal adjustment made to the terms of an existing insurance policy. This can involve adding, removing, or modifying coverage, adjusting deductibles, or updating personal details like the insured’s address or vehicle information. Policy changes can be initiated by the policyholder or the insurer and are essential for ensuring that the insurance coverage aligns with the current needs and circumstances of the insured.
For example, in homeowners insurance, a policy change might be necessary if you add an extension to your home, requiring an increase in the dwelling coverage to protect the new addition. Similarly, in car insurance, you may need a policy change if you purchase a new vehicle, alter your driving habits, or move to a different location, as all these factors can affect your coverage and premium.
When a policy change is made, it is usually documented through an endorsement. The endorsement serves as a formal record of the adjustment and ensures that the policyholder and insurer are both aware of the new terms.