What is the compensation?

It is the monetary outlay making the insurer to a loss covered by the policy occur. When the fixed sum insured in the policy is less than the actual value of the property affected in time of the incident, it is a typical case of underinsurance. In this case, the compensation will be reduced by the same proportion of underinsurance, to be determined by application of relevant calculation.

The insured must know how to file a claim for compensation, it has to review what provides the policy regarding the procedure to be followed in such cases or request information from the Insurance Company, if the policy no person was contained such information.

What they are called reserves?

They are concepts used to signal Insurance rights of third parties that is sometimes enforceable obligations and concrete and other abstract of the insurer.

To set more clearly, let’s get at the end of a fiscal year (December 31) and see that at the time that coincides with the balance sheet of insurance companies, these concepts are:

  • Reserve for outstanding claims and / or payment

Are estimates that the insurer must indicate in their accounts for losses incurred but not yet paid amounts?

  • Reserve for unexpired risks

Since have issued policies throughout the year and collected annual premiums, to December 31 there will be a number of premiums actually earned, by the ratio of run to then risk and other amount belongs to cover risks, henceforth, i.e. from 1 January next year. The second part takes the name of reserve for unexpired risks or unearned premiums, the calculation is done by different methods.

  • Mathematical reserve

Is the proportion of premiums paid by policyholders of life insurance in excess of what the insurance needs every year. These amounts held by the insurer generate interest in favor of the insured and serve to continue coverage risk. The accumulation of reserves cannot be freely available to the insurer, but be invested according to legal regulations on the matter. The calculation procedures of this technical reserve are subject to actuarial mathematics.

Personal insurance

comprises the different types of life insurance and others linked to human health , such as illness, medical care, personal accident, disability, among others person. They are characterized by contracted for variables and virtually unlimited sums insured

What it is a fire insurance?

Covers damages resulting fire or flame. It extends to cover, under the same policy, a range of additional coverage called Allied lines, from explosion, earthquake, water damage, smoke damage, flood, to strikes and civil commotion, malicious damage and vandalism vehicle impact, terrorism, among others.

What is homeowners insurance?

It is certainly fully protects your home. Coverage includes protection helmet and finishes as well as its content. This insurance allows you to recover your home in case of being affected by a disaster, freeing the insured expenses that could be very costly arising from damages suffered water facilities, sewage, electricity and gas. This insurance therefore offers broad protection not only housing, but also to goods and belongings that the insured has in it.