What does Optional Settlement Clause mean? Read on to discover the definition & meaning of the term Optional Settlement Clause - to help you better understand the language used in insurance policies.
Optional Settlement Clause
An optional settlement clause is a clause in an insurance contract that gives the policyholder an option to have his or her settlement made in several different ways if a covered loss is incurred. For example, if a homeowner's insurance contract has an optional settlement clause, it may give the policyholder an option to have his or her home repaired, or replaced, depending on the extent of the losses.
We hope the you have a better understanding of the meaning of Optional Settlement Clause.