A provision in insurance policies, which stipulates that if the repair or replacement of the damaged property results in better than “like kind or quality,” the insurers will not pay for this net improvement.

This clause is designed to preserve the concept of indemnity so the insured does not profit from the loss.

  • Example – If you get in a wreck and total your beat up 72 Gremlin, you may decide you want to replace it with a new Ferrari. The betterment (amount beyond what the insurer owes for the Gremlin) would be your responsibility to bear.


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