What Is First Loss Insurance?

First Loss Insurance. The first loss insurance means that the insured is not required to insure the full value of its property, but the maximum amount of loss that can be caused by an insured accident is the insurance amount, also known as "first danger insurance".

First loss insurance

Aka "first danger"

Its characteristic is that the compensation amount is equal to the loss amount, but not more than the insurance amount. theft

The property value is divided into two parts: the first part of the property value is equal to the insurance amount, which is considered to be fully insured, and all losses in the insurance amount should be fully compensated; the second part of the property value is the part that exceeds the insurance amount.