Multi-risk home insurance is the insurance by which the owner or possessor of a home (or in other varieties, commercial premises) tries to cover the risks that it suffers damages of various kinds: derived from electrical short circuits, breakage of pipes, various breakdowns, domestic accidents, caused by storms, theft, etc. Also for civil liability caused by damages or injuries that may be caused to other people or their property from the home, such as falling objects from windows or balconies, flooding on lower floors, etc. It usually includes a breakdown repair service.
One of the most important aspects to take into account when insuring a home is the concept of underinsurance.
Underinsurance occurs when the value of the insured capital is less than the new replacement value of the insured object. In the case of home insurance, it can be given both on the continent (value of the building) and on the content (trousseau, electrical appliances, etc). When declaring a claim, the expert will verify that the values that appear in the policy of the insured are real, if it were not so at the time of indemnifying the claim, the proportional rule would apply which it says is: if a claim occurs, the compensation is reduced in the same proportion as the capital is insufficient “
We see it better with an example:
Let’s consider a home with an insured content of 30,000. If there is a robbery and the value of the stolen is 5000, in theory the compensation should be for that value. But if the actual content of the home were 40,000, it would mean that we have a 25% underinsurance, which would apply the proportional rule to compensation and only pay the insured 75% or what is the same, 3,750.