Automatic Reinstatement Clause

Definition of "Automatic reinstatement clause"

Richard Wilson
  Century 21 Beggins

Provision in a property or liability policy stating that after a loss has been paid, the total original limits of the policy are once again in effect. For example, assume a loss of $40,000 has been paid under a $100,000 property damage coverage homeowners insurance policy. After payment of the loss, the original $100,000 is reinstated.

Search Real Estate Glossary

Related Real Estate Glossary terms

Related Real Estate FAQ