Purpose of the insurance

The object of the insurance is what the policy seeks to cover. In other words, it is what the insurer plans to compensate with compensation in the event of a claim.

Purpose of the insurance

In other words, the object of the insurance is the element that is aimed at protecting, and its nature varies according to the type of policy to which we are referring.

It is important to identify the object of the insurance because the compensation to which the insurer undertakes in the contract in the event of a claim will depend on that. Thus, for example, a home does not have the same replacement value as a car.

Likewise, when determining the object of the insurance, it is clear what the exclusions are. For example, if it is a fire insurance that protects a home, this does not contemplate the damage that the insured may suffer to his health due to the same claim.

Another way to understand the object of the insurance is as compensation for the economic damage caused by a certain event. This, within the framework of a contract signed between the insurer and its client.

The purpose of the policy is so important to the insurance market that different categories emerge based on it, particularly the two main ones, personal insurance and property insurance. The latter, for example, are insured for movable or immovable property that may suffer eventual damage.

Examples of insurance object

Some examples of insurance objects are:

  • In the case of personal insurance, it is the individual himself. Thus, the various circumstances that could affect it such as an accident, illness or unemployment are covered.
  • In property insurance, as mentioned above, the protected object is an asset. For example, in vehicle insurance, it would be the car, while in home insurance it would be the home.
  • For a liability policy, the object of the insurance would correspond to the consequences of negligence. It can be, for example, a professional insurance that covers against failures in the performance of a job. These mistakes can lead to an eventual lawsuit against the worker.