Automatic Increase in Insurance Endorsement

(redirected from Inflation Endorsement)

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.
References in periodicals archive ?
While it is always a good idea to recommend a 90% to 100% replacement cost policy with an inflation endorsement, it is essential that the 80% rule be met.
An inflation endorsement assures that the property coverage automatically adjusts annually in response to rising prices.
Local inflation endorsements, designed to adjust values automatically, should be reviewed before and after the devaluation for adequacy.