kindlustussummade

Kindlustussummad (sum insured) are the maximum amounts an insurer will pay under an insurance contract for a covered loss. They set the limit of indemnity, distinct from the actual value of the insured item or the premium charged. In Estonian insurance usage, kindlustussummad refer to these sums.

In property and motor insurance, the sum insured is typically the replacement cost or declared value of the item. It is chosen by the insured, often with guidance from the insurer, and may be adjusted over time for inflation or improvements. In life and health policies, the sum insured represents the death benefit or coverage amount payable on a specified event.

Sums insured also interact with policy limits. For liability insurance there can be per-claim limits and aggregate limits; some contracts use a single sum insured that caps payments for each claim.

Underinsurance risk: If a loss exceeds the sum insured, the payout is typically reduced proportionally (the average clause). This encourages maintaining adequate sums insured. Regular reviews at renewal help align the sum with current value.

Premiums usually rise with higher sums insured, and insurers may require re-evaluation after major changes to property or risk. The concept is common in many jurisdictions and forms part of standard insurance contracts, serving to define the maximum exposure the insurer will cover for each insured item or event.