Automatic Increase in Insurance 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.
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.
Chapter 9: property and liability insurance planning
Local inflation endorsements, designed to adjust values automatically, should be reviewed before and after the devaluation for adequacy.
Currency exposures: lessons learned in Mexico
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