Retroactive Restoration

What Does Retroactive Restoration Mean?

Retroactive restoration ensures that an insured party does not lose coverage after a covered claim is approved. Instead, the full coverage amount of the policy is automatically reinstated. This allows policyholders with retroactive restoration policies to retain access to the policy’s full coverage amount, even after experiencing losses.

Insuranceopedia Explains Retroactive Restoration

Retroactive restoration benefits policyholders by ensuring they are not penalized for filing a claim. It is particularly advantageous if additional losses are discovered later for a covered period that has already passed.

While this feature is highly desirable for policyholders, it can be more expensive for insurance companies to provide.