Reserve Redundancy

When claims settle for less than the money set aside for them, freeing up the surplus. Its opposite — reserve deficiency — means the insurer under-estimated and must top up.

This is a friendly general explanation, not legal or policy language. Exact coverage depends on your policy, carrier, and state. 🤝

Written and reviewed by the We Insure Things team — licensed independent insurance agents. Last reviewed July 23, 2026. Questions? Ask a licensed agent.