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Why might the amount recovered from an insurer, not cover the full cost of an event?

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Why might the amount recovered from an insurer, not cover the full cost of an event?

asked Oct 11, 2012 in Risk and Insurance by BuiltIntelligence (870 points)  

1 Answer

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Best answer

Because insurance policies often include 'deductibles' (also known as 'excesses'). This is a sum of money which the insured party is required to pay towards the cost of a risk event. They ensure that the insured party shares the exposure to risk with the insurer.

answered Oct 11, 2012 by BuiltIntelligence (870 points)  
edited Nov 9, 2012 by Rob Glasspool