What is over insurance and underinsurance?

What is over insurance and underinsurance?

Notes on Over Insurance: In case of over insurance a situation arises where insurance cover has been taken for the value which exceeds the actual cash value of the insured risks. It can be also known as the replacement value.

Is self insurance the same as insurance?

Key Takeaways. Self-insurance is a strategy for mitigating against the possibility of a future loss by putting aside a set portion of your own money, rather than buying insurance and having an insurance company reimburse you for what you’ve spent.

What is a floating policy?

plural floating policies (also floater) a type of insurance in which the value of the goods being insured cannot be calculated exactly, so the payment for insuring them can be changed after a period of time.