Addendum

What Does Addendum Mean?

An addendum is an addition to an insurance contract that either increases or removes coverage for a specific circumstance. It is included when either the insurer or the policyholder feels the need to adjust the coverage. Once added, the addendum becomes legally binding, along with the original contract.

Insuranceopedia Explains Addendum

Addendums are available because not every standard insurance policy can meet the needs of every individual. Therefore, insurance companies often provide options to add or remove coverage. For example, many standard property insurance policies do not cover acts of God, such as tornadoes. However, many property insurers offer addendum options to include this type of coverage if the policyholder desires it. In cases like this, as well as others involving addendums, the individual’s unique circumstances often influence their decision.