"First risk" insurance means that the policyholder and provider must agree upon maximum coverage per occurrence of damage, according to a certain system. This amount is much lower than the general amount of insurance. Example: Let's assume the amount of insurance for a whole household is CHF 100,000.- and amount of "first risk" insurance for furniture glass is CHF 3,000.-. Effects: Underinsurance is virtually impossible for first risk coverage. In case of damage the benefits are not reduced due to underinsurance.