Definitions for "Average Clause"
Where a person underinsures property, this clause in the policy allows the insurance company to pay only a proportion of the insured amount, the policyholder bearing the balance of the claim.
A coinsurance clause; a clause requiring an insured to purchase insurance for a stipulated portion of the entire value of the thing insured; see General Average; Particular Average.
A clause in a marine insurance policy, whereby partial losses are subject to special conditions (e.g. a franchise or deductible is to be applied to claims).
Keywords:  condition
Same as Average condition.