What does it mean for an insurance policy to be “in force”?

An insurance policy being “in force” means that it is active and provides coverage at that time. This status indicates that the policyholder is currently protected under the terms of the policy, and all contractual obligations—such as coverage limits and deductibles—are in effect. The premiums have been paid or are up to date, allowing for claims to be made according to the policy's stipulations.

Understanding this terminology is crucial in the insurance industry, as it affects how claims are processed and the responsibilities of both the insurer and the insured. A policy that is in force assures the policyholder that they can rely on the coverage provided should an insurable event occur. This knowledge ensures that both clients and adjusters are fully aware of the coverage status, leading to informed decisions regarding claims and risk management.