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Automatic Increase in Insurance Endorsement
(redirected from Inflation Endorsement)

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Automatic Increase in Insurance Endorsement
An addendum to an insurance policy in which the amount of coverage for a property increases over time in accordance with changes to the construction cost index. This endorsement allows a policyholder to maintain coverage regardless of the inflation rate. It is also called the inflation endorsement.


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Local inflation endorsements, designed to adjust values automatically, should be reviewed before and after the devaluation for adequacy.
 
 
 
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