An insured is entitled to coverage under a policy that a prudent person would expect it to provide. This principle is called:

The principle that an insured is entitled to coverage under a policy that a prudent person would expect it to provide is known as the reasonable expectations doctrine. This doctrine emphasizes that insurance contracts should be interpreted in a way that aligns with the expectations of the insured, based on the policy language and the circumstances surrounding the contract.

When a policyholder purchases insurance, they do so with certain assumptions about what protections the policy offers. The reasonable expectations doctrine protects policyholders by ensuring that they receive coverage that aligns with those expectations, even if certain language in the policy might technically limit coverage. The focus is on what a reasonable person would anticipate receiving from the policy, rather than strictly adhering to the fine print that may confuse or mislead the insured.

This principle plays a crucial role in consumer protection within the insurance industry, as it reinforces the notion that insurers should be clear and transparent about the coverage they offer, ensuring that individuals can make informed decisions.