By-law Endorsement
Definition - What does By-law Endorsement mean?
A by-law endorsement is an insurance endorsement that covers expenses added onto a claim due to certain by-laws of an area. These endorsements are usually optional for the policyholder. The by-law regulations could be town, city, state, or federally regulated.
Insuranceopedia explains By-law Endorsement
By-laws can be very relevant in insurance claims. For example, if a drunk driver crashes into a 10-foot long pool house and a new by-law requires that pool houses be 12 feet long, the insurance company may not cover the construction costs of adding an additional 2 feet of length. Without a by-law endorsement, the property owner would be forced to cover this cost, but the property insurance company should still cover the rest.
Email Newsletter
Join thousands receiving the latest content and insights on the insurance industry.
