Vakuutussumma

Vakuutussumma, often translated as sum insured or insurance amount, refers to the maximum amount of money an insurance company will pay out in the event of a covered loss. This figure is determined at the time the insurance policy is taken out and is crucial for calculating the premium, which is the cost of the insurance.

The vakuutussumma is a fundamental component of most insurance contracts, including life insurance, property insurance, and liability insurance. In property insurance, for example, the vakuutussumma typically represents the replacement cost or market value of the insured asset. If a house is insured for 200,000 euros, this is the maximum the insurer would pay if the house were completely destroyed.

In life insurance, the vakuutussumma is the death benefit that will be paid to the beneficiaries upon the insured person's death. The amount is chosen by the policyholder based on their financial obligations and desired level of protection for their dependents. For liability insurance, the vakuutussumma sets the limit for the damages the insurer will cover in case the policyholder is found liable for causing harm to a third party.

It is important for policyholders to accurately assess their needs and choose an appropriate vakuutussumma. An insufficient vakuutussumma could lead to underinsurance, meaning the payout may not cover the full extent of the loss. Conversely, an excessively high vakuutussumma would result in higher premiums without providing proportional additional benefit, making the insurance more expensive than necessary. Regularly reviewing and adjusting the vakuutussumma, especially after significant life events or changes in asset value, is advisable.