Homeowners InsuranceQuestion 123 of 158
The liberalization clause in a homeowners policy means that:
a.If the insurer broadens coverage without extra premium during the policy term, the broader coverage applies to existing policies
b.The insured may add coverages at any time without underwriting
c.The insurer may increase the premium mid-term
d.Coverage automatically renews every year
Explanation
Under the liberalization clause, if the insurer broadens coverage under the form without requiring additional premium during the policy term, the broader coverage applies automatically to all existing policies. It protects insureds from being stuck with narrower coverage solely because their policy was issued earlier.
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