A waiver of restoration premium is a provision in an insurance policy that allows the policyholder who receives benefits from a claim to continue with the same level of coverage prior to the payout. Without a waiver of restoration premium, the policyholder may be able to pay an additional premium to enjoy the same level of coverage.
Conversely, a policy might no longer offer coverage once the claim payouts have reached its limits. Some policies detail a maximum for both individual events and over the policy's term. In case restoring coverage is not possible, policyholders could purchase secondary or supplemental policies to reduce the risk of a lapse or lack of coverage if the primary policy reaches its limits.
Share this Term
Stay informed with Insuranceopedia!
The world of insurance can be complicated. Subscribe to the Insuranceopedia newsletter and stay in the know! Access expert content, industry term definitions and answers to your questions from knowledgeable insurance insiders. Arm yourself with what you need to know to keep your assets and your family safe.
Latest Articles
