Underinsurance occurs when an asset is insured for less than its actual value. In the event of a claim, the compensation will be lower, applying the proportional rule. It can be avoided with professional advice.
First-risk insurance covers up to an agreed amount, without considering the total value of the property. It avoids applying the proportional rule and is useful to insure specific or partial assets.
Distinguish between burglary, robbery and theft to understand insurance coverage. Burglary implies force, robbery implies violence and theft implies the absence of violence.
Contents" in an insurance policy includes the goods inside the property, such as furniture, appliances, clothing, equipment and merchandise. It varies according to the type of property and should be detailed in the policy.
The term "building" in an insurance policy includes the structure of the property, such as walls, ceilings and fixed installations. It is valued according to the cost of construction and materials, not the market.
The Special Conditions are specific details of the insurance contract, including insured, coverages, duration and premiums. Reviewing them carefully is key to ensuring that they are correct.
The General Conditions of the insurance contract detail rights, guarantees and exclusions. They are essential together with the Special Conditions. Keep them up to date.
The insured interest is the valid economic relationship between the insured and the property exposed to the risk. It must be legitimate and estimable in money according to the Insurance Contract Law.
