Errors in insurance does not guarantee compensation for losses

03.07.2011 00:30
Articles about real estate | Errors in insurance does not guarantee compensation for losses One of the most dangerous of errors, assuming you are guaranteed not to receive from the insurance company's reimbursement of losses - is properly specified in the contract of insurance the Insured. Despite the seeming absurdity of such a step, in practice, property insurance, such a "blunder" occurs, and, oddly enough, suffer from the large holding companies, corporations and groups of companies. This and other insurance issues for real estate commented in the company's insurance broker BritMark.

The nature of this error is as follows. Employees of organizations that come in various combination, mistakenly believe that if the action of "A +" owned by "A", the company "A" may be a property insurer of "A +". But, as the direct material interest of the Insured is absent, then the insurer has a legal right not to pay compensation.

Related article: How to insure a vacation home?

Typically, this error occurs when the property is "A +" pledge in a bank to secure commitments under the credit agreement, which concludes with the bank's parent company "A". In such a case, the contract of insurance the Insured specify behalf of "A +" and Vygodopriobretalem - the bank on the basis of a loan agreement entered into between the bank and the company "A".

It should be noted that not all types of insurance is the property owner must act by the Insured. Consider the situation where the contract of insurance in addition to property insurance is also provided and cover the risk of a break in the business. " Such an expansion of insurance includes not only compensation for Insured property losses, and compensation for its fixed costs and lost profits for a time, until an insured event did not exercise ordinary business activities. For large corporations, it is possible that production facility owned by one entity and leased sister company engaged in the manufacture of products. The main profit corporation receives from the production and sale of finished products.

In case the insured event (eg fire in the workplace), it lost profits from the sale of finished products and will be the main expense of the corporation. But note that if the insurance contract will be entered by the Insured property owner, not the manufacturer, seller, and the amount of compensation to which the policyholder can claim will be limited to just the size of rents in lost them from the tenant for the downtime of the production complex .

An interesting point with the correct definition of the Insured, there is also in insurance product liability. This situation occurs when dealing with large holdings, which include both organizations, producing and trading units that sell these products. Insured in this case necessarily prescribe the manufacturer. But how to protect the company, selling products? Indeed, dissatisfied consumers in the first turn to the claim precisely to the seller. Solution may be competent disclosure of such item of the insurance contract as the insured party under the contract. " It is here that you want to list all the companies to which consumers can apply to the claim.

In this article, the author drew attention only on one aspect of the three possible sources of error. But be careful all the nuances of the contract, since the settlement of the insured event begins at the moment of signing the insurance contract, and your serious attitude at this stage will help avoid any problems in the future. All the best to you and reliable partners!

Katerina Petrenko, a specialist division of property insurance BritMark

Content tags: Insurance
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