Post by account_disabled on Mar 13, 2024 22:56:54 GMT -8
It is true that the insurance sector, the “world of insurance”, like every world, every union, every sector, has its peculiarities, idiosyncrasies and, above all, its technicalities, which arise from having to delimit, materialize and organize a reality. complex as is that of the insurance activity, based on forecasts, risks, claims, chance, coverage, actuarial calculations... For this reason, it is sometimes difficult to translate or transport this complexity into plain language, understandable to every “common citizen” who takes out insurance. In this blog we have always opted to carry out a humble task of disseminating some of these complexities, of what, these common citizens, when they are not satisfied with the insurance activity, we call "small print": now... the small print... And this small print is not such if it is well explained from the beginning of an insurance contract, if one is not deceived today, it is difficult to be disillusioned tomorrow.
Along these lines, today we are going to explain a very simple and, perhaps, not uncommon concept in the insurance world: underinsurance. What is underinsurance? Underinsurance occurs when, in the event of an accident, the value that we gave to the insured in the policy, that is, the insured capital, is lower than the real value of the insured. Although this situation can occur in any type of insurance, it is more common in the contracting of container and content values in home BYB Directory insurance , so we are going to see a practical example of underinsurance with a home policy. Practical case of underinsurance in a home policy Let's imagine that we want to insure our house, one of the main data that we must indicate to the company is how much we value the container (value of the home) and the contents (value of what is contained in the home) of our home.
It is important to know that these values will always be insured, in principle, at first risk, that is, the established amounts will be the compensation limit in the event of an accident. Let's resume our imaginative exercise, and return to the situation of taking out insurance for our home, in which we have contracted a content value of 10,000 euros, when, in reality, the set of furniture and contents of the house exceeds that capital, and we have at least a valuation of 20,000 euros. Obviously, the less capital contracted, the less premium we will be paying, but, the day an accident occurs, even if it is not total, we will end up paying dearly. And if, for example, knock on wood, tomorrow we had an accident at home covered by the policy, and the expert who came certified that the value of our contents was higher than that insured in the policy, a situation of underinsurance would be declared and The law allows the insurance company to apply the so-called “ proportional rule .” Let's see what it consists of.
Along these lines, today we are going to explain a very simple and, perhaps, not uncommon concept in the insurance world: underinsurance. What is underinsurance? Underinsurance occurs when, in the event of an accident, the value that we gave to the insured in the policy, that is, the insured capital, is lower than the real value of the insured. Although this situation can occur in any type of insurance, it is more common in the contracting of container and content values in home BYB Directory insurance , so we are going to see a practical example of underinsurance with a home policy. Practical case of underinsurance in a home policy Let's imagine that we want to insure our house, one of the main data that we must indicate to the company is how much we value the container (value of the home) and the contents (value of what is contained in the home) of our home.
It is important to know that these values will always be insured, in principle, at first risk, that is, the established amounts will be the compensation limit in the event of an accident. Let's resume our imaginative exercise, and return to the situation of taking out insurance for our home, in which we have contracted a content value of 10,000 euros, when, in reality, the set of furniture and contents of the house exceeds that capital, and we have at least a valuation of 20,000 euros. Obviously, the less capital contracted, the less premium we will be paying, but, the day an accident occurs, even if it is not total, we will end up paying dearly. And if, for example, knock on wood, tomorrow we had an accident at home covered by the policy, and the expert who came certified that the value of our contents was higher than that insured in the policy, a situation of underinsurance would be declared and The law allows the insurance company to apply the so-called “ proportional rule .” Let's see what it consists of.