A contract condition of the Homeowners policy which provides that the insured gets the benefit of broadened coverage if the company adopts a broader form without an increase in premium is:

• A. Subrogation
• B. Liberalization
• C. Assignment
• D. Coinsurance

Answer: (B)

Liberalization is the provision that automatically extends newly broadened coverage to existing policyholders at no extra premium when the insurer broadens the form. This means if the company makes a form broader and doesn’t raise the premium, your homeowners policy gains those broader protections as of the effective date of the change (within any applicable time window the policy specifies). For example, if the insurer adds coverage for an additional peril or increases policy limits across the form, you automatically receive that broadened coverage without needing to amend your policy or pay more. This sets it apart from subrogation (the insurer’s right to pursue third-party recovery), assignment (transfer of policy rights), or coinsurance (sharing risk based on value).