Fundamentals and characteristics of property insurance

 

 

Property insurance is carried out mainly in the form of voluntary insurance, except for the state property leased. Policyholders favor any enterprises and organizations of various organizational and legal forms, as well as individuals. Under contracts of property insurance can be insured by any part of the (Group) property.
Legal and natural persons may insure the property in full his assessment, ie the actual, real value, and in a certain share. With property insurance the insurance sum can not exceed its actual value at the time of conclusion of the contract. Under the intrinsic value of the property is most often understood as replacement (book) value.
In property insurance in the insurance contract at less than full value of the property there are two systems of reparation: the proportional system and the system of reimbursement of the first risk.
When the system of proportional insurance compensation insurer not reimbursed the entire amount of the damage, but only as much interest as far as the insured property. The limit of insurance liability is limited to the sum insured. This system is more common.
When the system first provides for risk compensation not exceeding the sum insured specified in the insurance contract (within the overall value of the property). If the amount of damage proved to be more than the insured amount, the difference will not be refunded. This damage within the insured amount is called the first (refundable) risk, and in excess of the sum insured - the second (non-refundable) risk.
In terms of insurance it provides a list of insurance risks that define the different types of property insurance. Determining the list of insurance claims made on the basis of two approaches (methods):
The method of elimination.
The method of inclusion.
One of the conditions of property insurance is often the definition of a franchise - the unpaid portion of the damage. The size of the franchise is approximately equal to the costs of the insurer to determine the amount of damages. Deductible can be conditional and unconditional. Conditional franchise defines unpaid part of the damage in the event that the amount of damage is less than its value. If the size of the damage exceeds the amount of the conditional franchise, it is not taken into account when determining the amount of damages. Unconditional franchise defines unpaid part of the damage, regardless of its size. The deductible is the percentage of the sum insured or in absolute terms.