In the world of property insurance, there are many specific terms that are important to understand. Today we will tell you about some of them:

1) The insured amount is the maximum amount that the insurance company undertakes to pay upon the occurrence of an insured event. It is equal to the market value of the property at the time of conclusion of the contract and may include the cost of interior decoration, repairs, remuneration of builders and the cost of engineering equipment.

2) The insurance premium is an insurance fee calculated on the basis of established tariffs and paid by the policyholder at the time of conclusion of the contract. Depending on the term of the contract, the premium may vary (for example, if the contract is concluded for a period of less than a year).

3) The deductible is a part of the losses that the policyholder assumes. For example, if the contract provides for an unconditional deductible in the amount of 5% of the insured amount, the insurance company will cover losses only in excess of this amount.

4) Subrogation - transfer to the insurance company of the rights of the policyholder's claim to third parties responsible for damage after payment of insurance compensation. Thus, the insurance company can recover its losses.

5) An insured event is an event provided for in the insurance contract that has already occurred and as a result of which the insurance company has an obligation to make an insurance payment.

Understanding these terms will help you better understand the terms of the insurance contract!