Liberalization Clause | Propertylogy

Liberalization Clause

By on June 11, 2019

A liberalization clause is a insurance policy provision which allows the insurer to make adjustments to coverage to respond to changes in law and regulations.

These clauses are most often found in property insurance policies.

Because law and regulations are often amended, created, or abolished, insurance contracts can often find that need to adequately address the changes so as to prevent disputes and conflicts in future with policy holders.

A liberalization clause enables them to legally make changes to policies to account for changes in law without requiring policy holders to pay more premiums.

Changes might come in the form for expansion of coverage areas, changes to coverage limits, documentation for claims, etc.

Both parties would benefit from such clauses present in policies.


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