In the context of property insurance, what does the term "endorsement" refer to?

In property insurance, the term "endorsement" specifically refers to a rider that adds or modifies coverage within an insurance policy. Endorsements are crucial because they allow policyholders to customize their insurance contracts to better fit their individual needs. For example, an endorsement might expand the coverage limits for certain types of property, add new types of coverage, or specify exclusions to the general policy.

By incorporating endorsements, the insurance policy becomes more tailored, ensuring that the insured is adequately protected against specific risks or scenarios that may not be covered under the standard terms of the policy. This flexibility is key in addressing the diverse situations that policyholders might face.

The other choices do not accurately represent what an endorsement is. While deductions from premiums, claim settlements, and insurance fraud each play important roles in the broader context of property insurance, they do not define or encompass the function of endorsements in modifying the terms and conditions of coverage in a policy.