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Excluding flooding in a homeowners policy is an example of setting insurance and deductible limits, an important concept is that insurance should be used to pay heavy losses instead of paying small losses. The objective is to ensure heavy losses that could lead to financial ruin and to exclude small losses that can be budgeted on current revenues. This concept is called payments for homeowner insurance, which are usually included in the homeowner`s monthly mortgage payments. The credit bank that receives the payment assigns the portion of the insurance coverage to a trust account. As soon as the insurance bill is due, the amount owed is paid by this receiver account. ABC Company insured its building on the basis of a replacement fee of $700,000 under non-life insurance with an 80 per cent co-insurance clause. The building had $1 million when it suffered a loss of $US 40,000. How much does ABC Company receive from its insurer, provided there is no deductible? Non-life insurance contains declarations, conditions, definitions, exclusions and an insurance agreement. Certain terms of the policy, such as Z.B.

Under-rogation, cancellation, other insurance and attributions, do not fall into these categories. The part of an insurance contract in which these provisions can be found is the insurance policy Each owner has a liability limit that determines the amount of coverage the insured has in the event of an unfortunate incident. The standard limits are usually set at $100,000, but the policyholder can opt for a higher limit. In the event that a claim is invoked, the liability limit sets the percentage of the amount of coverage that would be spent on the exchange or repair of damage to property structures, personal property and living expenses in another location while the property is being processed. An insurance policy is a legal contract between the insurance company (the insurer) and the insured, the company or the insured person (insured). When you read your policy, make sure the policy complies with your requirements and understands your responsibilities and responsibilities of the insurance company in the event of a loss.