What are the consequences of under insurance?
What are the consequences of under insurance?
Potential losses could be exacerbated if the insurer applies the ‘average’ principle to a claim, warns Mr Wedderburn. “If equipment is underinsured and the insurer applies ‘average’ to the level of underinsurance, this could result in a large financial loss being incurred in the event of a claim. Apr 19, 2016
What is a double insurance?
What is ‘double insurance’? Double insurance arises where the same party is insured with two or more insurers in respect of the same interest on the same subject matter against the same risk and for the same period of time. May 21, 2015
What is an average clause?
Definition of average clause 1 : a clause in an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured — compare coinsurance.
