What does an endorsement do in title insurance?

An endorsement in title insurance serves the purpose of adding or modifying coverage provided by the original title insurance policy. Specifically, when an endorsement extends the period of coverage, it confirms that the protection offered by the title policy remains valid beyond the standard timeframe or continues to be active in specific circumstances. This is critical for ensuring continued defense against any claims or issues that may arise related to the title, providing an additional layer of security for the policyholder.

The context for this answer highlights the importance of maintaining protection in a dynamic legal environment, and how endorsements can adapt policies to meet changing needs. This flexibility is vital in real estate transactions where circumstances may evolve after the original policy is issued.

Other options like changing the policy owner, increasing the coverage amount, or reducing the premium do not align with the essential function of an endorsement. Each of these actions would typically require a different process or separate policy adjustments rather than simply modifying an existing policy through an endorsement.