Property insurance contract - reliable protection against unforeseen situations

Although most often the contract of personal insuranceproperty is under the pressure of banks that require to issue a policy if they wish to use real estate or in cars as collateral when applying to lending programs, such a document becomes a reliable protection against various unforeseen situations. In this case, when the property is destroyed by third parties or by virtue of force majeure circumstances, a citizen can recover his value by shifting the damage to the insurance company.

Insurance liability:

Concluding the property insurance contract,the policyholder can receive a payment in the event that the property and all items in it are destroyed as a result of an explosion or fire, flooding with water or other natural disasters. However, the insurance company usually reimburses only direct damages for the amount originally stipulated in the policy, but even after payment of compensation the insurer continues to bear responsibility for the insured object and in the future until the contract expires.

Varieties:

Currently, the insurance contract canto conclude both with citizens and with legal entities on a voluntary basis. The Company can insure against the risk of damage or death such property objects as air, water or land transport, as well as the goods transported with it. Citizens are offered to arrange policies that protect them from damage or loss of garden houses and cottages, country houses and apartments, various vehicles and household goods.

Double insurance:

Often, citizens or company managementseeks to conclude a property insurance contract with several insurers to increase the amount of compensation for the occurrence of an insured event at times. However, if the percentage of payments from various companies exceeds the value of the insured property, the insured should not expect to receive huge compensation.

So, the current legislation provides,that in the case of "double" insurance, the person making out the policy is required to inform the company of all contracts relating to this property that were concluded in other insurance companies. In situations where the insured has not informed his agent in writing that the property is already insured in other companies, all policies may lose legal force.

Insurance cover:

Each insurance contract provides for the sizeinsurance cover on the basis of the list of possible risks specified in the policy to be drawn up. The list of insured events is compiled on the basis of two methods, including an exclusion method, where the contract specifies cases in which compensation is not paid. The method of inclusion, on the contrary, provides for the payment of compensation only in the event of occurrence of one of the insurance events listed in the text of the contract, and in other situations the company does not assume responsibility for the loss of the client's property.

Typically, the policies specify the sizefranchise - part of the damage, which the customer will not be paid. Thus, the conditional franchise provides that, upon the occurrence of damage to property, the policyholder will receive compensation if the amount of damage exceeds the minimum threshold specified in the policy. And in an unconditional franchise, the unpaid part is prescribed in advance as a percentage of the contract entered into.

Compensation for damage:

Each insurance contract must includedescription of the procedure for compensation for damage, and if the property is insured not at its full cost, the policyholder will be paid only a certain percentage specified in the policy. In situations where full compensation is provided for in contracts, payments are made within the amount specified in the policy.