Video: What Is an Insurance Liberalization Clause?

What Is an Insurance Liberalization Clause?

Insurance liberalization clauses are all about an insurance company being liberal with coverage. Find out about an insurance liberalization clause with help from a longtime member of the professional banking and insurance industries in this free video clip.

Video Transcript

Hi, my name is Emmanuel Osuyah, I am Principal of the Promise Insurance Group and I am a Certified Insurance Counselor. Now let's talk about insurance liberalization clause. This is just about an insurance company being liberal with coverage. So coverage that might have been limited before they just opened it up. Not too much, but extended the coverage a little more. When an insurance company takes such a decision to extend coverage they may not charge you any money for that coverage extension because they didn't have to notify you because they're using their liberalization clause in the policy. If they're not required by law to notify you they may not charge you any premium for the coverage extension. I'll give you a good example. Most homeowners insurance policies will provide coverage for an event for one day. So lets say you're having a wedding at another location outside of your home. Your homeowners insurance policy may extend coverage to that wedding. Some policies may require you to notify the insurance company that the event is going to occur. If the insurance company decides to change that requirement and just simply extend coverage regardless of whether you notify them or not they may not notify you of that change. Therefore they may not charge you for that change and you will be covered on the day of the wedding. My name is Emmanuel Osuyah and I thank you for watching.

What Is an Insurance Liberalization Clause?

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