First-loss cover
Some insurers offer first-loss insurance policies. Comparis explains the concept of insurance on a first-loss basis.
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Some insurance companies offer so-called first-loss cover. Insurance on a "first-loss" basis means that the policyholder and the insurance company agree on a maximum sum insured per loss event for a certain module of an insurance. This amount is much smaller than the general sum insured.
Example:
The sum insured for all household contents is CHF 100,000.
The sum insured on a "first-loss" basis for furniture glass is CHF 3,000.
Consequences:
Underinsurance is not possible with a first-loss cover.
In the event of damage, the benefits for the "first loss" are not reduced due to underinsurance.