What are 'policy endorsements' primarily used for?

Policy endorsements are primarily used to modify coverage or terms of an existing policy. This function allows policyholders or insurers to add, delete, or change specific terms and conditions without needing to create an entirely new insurance policy.

For example, a homeowner may want to add coverage for jewelry or fine art that was not included in their standard homeowners' policy. In this case, an endorsement would be issued to extend coverage to those specific items. Similarly, endorsements can be used to change deductibles, adjust coverage limits, or clarify policy language for better accuracy and relevance to the insured's situation. Ultimately, they provide flexibility and customization, reflecting changes in risk or insurance needs over time.

The other choices present scenarios that do not accurately reflect the primary function of policy endorsements, focusing instead on aspects that are either not directly related to endorsements or misinterpret their purpose.