What is the primary purpose of policy endorsements?

The primary purpose of policy endorsements is indeed to modify the terms of an insurance policy, and one common function they serve is to increase coverage limits. Endorsements are amendments added to an insurance policy that can enhance or alter the existing coverage provided by the original contract. For instance, if a property owner wants to ensure they have adequate coverage for valuable items or specific risks not initially included in their policy, an endorsement can be added to adjust the coverage limits accordingly.

While endorsements can also include additional exclusions or provide basic information about a policy, their primary intent revolves around enhancing coverage. Denying claims is not an objective of endorsements; rather, they are intended to clarify and adjust the coverage to fit the insured's needs better. Thus, the option of increasing coverage limits accurately reflects the key purpose of policy endorsements in the context of insurance practices.