The inflation guard, also known as increased dwelling protection, automatically adjusts the coverage limit of an insurance policy to reflect changes in the value of the insured property over time, in line with the rate of price increase.

An inflation rider ensures that the value of the property is adequately protected and not underinsured. It is particularly relevant for homeowners or business policies, where the value of the property may increase over time due to factors such as construction, improvements, or general increases in reconstruction costs. This clause implies an increase in dwelling protection.

With the inflation guard endorsement, the coverage limit is adjusted annually to reflect the change in the value of the insured property. This helps ensure that in case of a covered event that causes damage, the owner is adequately protected and can cover the updated costs of reconstruction or repair.