MATERIAL DAMAGE POLICY

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MATERIAL DAMAGE POLICY The policy covering damage to property (usually a commercial fire policy) as the result of which damage a business interruption claim may result. It is a condition of business interruption insurance that a material damage policy must be and remain in force. The purpose of Material Damage insurance is to reinstate the asset lost or damaged, as it was if no fire or other insured event had occurred. The insured may elect not to reinstate and can negotiate a financial settlement, which would reflect a depreciated reinstatement value. Material Damage insurance is subject to a deductible. This means that before the policy will respond the loss must exceed a pre-agreed amount. However the deductible vary between policies and insurers for a number of reasons: -Previous claims experience -Business activities -Building construction/location Three common exclusions to a Material Damage policy are: -Terrorism -Electronic Data -Building Defects Material damage policies exist in a wide variety of forms. Material damage risks are often included in "all risk' policy. Despite the name, the risks are defined. Specified risks are excluded. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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