Inflation Endorsement

Attachment to a property insurance policy that automatically adjusts its coverage according to the construction cost index in a community. This endorsement is necessary in a property contract to maintain adequate coverage. Otherwise, it is advisable for a policyowner, at time of renewal, to adjust the limits of coverage to reflect the increased cost of construction and the market value of the property.

Attachment to a property insurance policy that automatically adjusts its coverage according to the construction cost index in a community. This endorsement is necessary in a property contract to maintain adequate coverage. Otherwise, it is advisable for a policyowner, at time of renewal, to adjust the limits of coverage to reflect the increased cost of construction and the market value of the property.