Multi-risk insurance

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Multi-peril insurance is those that include different types of coverage. In other words, the policy is activated in cases of different claims that may not be related to each other.

This type of insurance then includes various claims such as fires, theft, accidents, and even damages that have to be repaired by a third party (civil liability). Everything, in the same policy.

By contracting multi-risk insurance, the user saves the task of having to take out a different insurance for each risk to which they are exposed, for example, their property.

Seen from another point of view, multi-risk insurance is, at the same time, property insurance and civil liability insurance, for example.

Examples of multi-peril insurance

The most notorious examples of multi-peril insurance are two:

  • Home insurance: These are those that protect the contractor's home. Thus, they offer coverage against fires, theft, natural disasters and other accidents that can damage real estate. But they can also include, depending on the contract, coverage for civil liability, and even repair assistance services in case the property suffers damage.
  • Multi-peril insurance for companies: Businesses can purchase comprehensive insurance that protects against fire, theft, and even includes coverage for lost profits. In other words, if the company must stop its operations due to damages suffered in its facilities, the insurer will pay compensation for the lost income.

Main exclusions

Multi-peril insurance has several exclusions. For example, it is logical that the natural wear and tear of the insured property and those damages caused by the insured negligently or intentionally are not covered.

Likewise, the policy is not activated in the event that the damage is caused by a claim not contemplated in the contract. This can be a war conflict or an avalanche, for example.

It should also be noted that there are uninsurable assets such as tanks where fuel is stored, as well as machinery and medical equipment.

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