Reasonable Expectations Copy

Lesson Progress:

Under the doctrine of reasonable expectations, the courts may find cause to stretch a policy’s coverages. This applies when a coverage is not specifically mentioned in the policy, but the insured has reason to assumed it is covered.

Due to the doctrine of reasonable expectations, courts, in some cases, have ruled that an insurer must pay a claim for a loss—even if the fine print in the policy says that a particular type of loss is excluded (not covered).