Inflation Endorsement
Definition of "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 policy owner, at time of renewal, to adjust the limits of coverage to reflect the increased cost of construction and the market value of the property.
Popular Insurance Terms
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Nominal interest rate minus the rate of inflation. ...
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