By-law Endorsement
What Does By-law Endorsement Mean?
A by-law endorsement is an insurance endorsement that covers additional expenses incurred due to specific by-laws or regulations in a given area. These endorsements are typically optional for the policyholder. The by-law regulations may be set at the town, city, state, or federal level.
Insuranceopedia Explains By-law Endorsement
By-laws can play a significant role in insurance claims. For instance, if a drunk driver crashes into a 10-foot-long pool house and a new by-law mandates that pool houses must be at least 12 feet long, the insurance company may not cover the cost of extending the pool house by 2 feet to meet the new requirement. Without a by-law endorsement, the property owner would need to cover this additional cost, though the insurance company would still cover the rest of the damage.
