Which insurance clause states that if the insured broadens coverage, it does not require an additional premium?

The liberalization clause is a key provision within an insurance policy that states if the insurer broadens coverage without an increase in premium, that enhanced coverage automatically extends to the insured. This means that if the insurance company introduces new or improved terms, benefits, or coverage features after a policy has been issued, the insured does not have to pay an additional premium for these enhancements. This clause ensures that insured parties benefit from favorable changes in the policy even after their policy is already in effect, thus promoting consumer protection and fairness.

In this context, the liberalization clause supports insurers in maintaining competitive offerings while also safeguarding policyholders by ensuring they are not penalized for taking advantage of new coverage extensions. This characteristic makes it an important element in personal lines insurance policies, as it reinforces the insurer's commitment to adapting to changing circumstances and market conditions without extra charges to the insured customer.