A liberalization clause is a provision typically found in insurance policies that allows for automatic coverage improvements or adjustments without an increase in premium. This often happens in response to changes in the market or regulatory environment.
This clause is designed to benefit policyholders by ensuring they receive the most favorable terms and coverage available.
Key Features:
Including an insurance liberalization clause is beneficial for both insurers and policyholders. For insurance companies, it helps maintain customer satisfaction and loyalty by keeping their offerings competitive. For insureds, it guarantees they receive the best possible coverage without the hassle of renegotiating terms or facing higher premiums.
At PSIC, we always strive to ensure you have the best coverage. That’s why we include a liberalization clause in all our policies, whether they are property like Homeowners, Renters, and Condo, among others, powersports policies like Motorcycle, or liability like Umbrella.
This means that if we adopt a revision that expands the coverage under this policy without an additional premium within 60 days before or during the policy period, the expanded coverage will apply to your protection immediately. If you have any questions, feel free to ask your trusted advisor!
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