Reservation Letter — Insurance Claims Definition
Industry
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 Mistakes
Ignoring letters because they look routine — RORs have legal effect.
