Reservation Letter
Informal shorthand for a reservation of rights communication from insurer to insured about potential coverage limitations.
Same concept as reservation of rights — may be a letter or email. Insureds should treat it as a signal to consult coverage counsel on complex claims.
Examples
A short email states the carrier will pay emergency tarping but reserves rights on flood vs. wind causation pending investigation.
Common Misconceptions
Ignoring letters because they look routine — RORs have legal effect.
Related Terms
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Back to Glossary Claims Pages AcademyThis definition is provided for informational and educational purposes. Insurance terminology may vary by jurisdiction, policy, and context. Consult a licensed professional for guidance specific to your situation.
