Waiver of Restoration Premium
Definition - What does Waiver of Restoration Premium mean?
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.
Insuranceopedia explains Waiver of Restoration Premium
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.
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