What does betterment clause mean?

betterment clause meaning in Insurance Dictionary

A provision, often found in the actual damage portion of automobile insurance policies, which stipulates when the fix or replacement associated with damaged parts causes better than "like type or quality," the insurers wont pay because of this net improvement. This clause is designed to protect the idea of indemnity and so the insured does not make money from the loss once the circumstances tend to be so that it is impossible when it comes to insurer to correct or replace the home without bettering the guaranteed's place.