sum insured

USAGE SUMMARY

The phrase "sum insured" is correct and usable in written English.
It is typically used in the context of insurance to refer to the maximum amount that an insurer will pay in the event of a claim. Example: "Before finalizing your policy, make sure to review the sum insured to ensure it meets your needs."

✓ Grammatically correct

News & Media

Science

Wiki

Human-verified examples from authoritative sources

Exact Expressions

7 human-written examples

For buildings insurance, you must base the sum insured on the rebuild cost and not the value of your property," says Mike Powell, insurance analyst at Defaqto.

Independent

"It is essential that the correct sum insured is declared at the start of any home insurance policy to avoid the risks of being underinsured when it comes to making a claim.

Independent

Most policies will pay out between £12,500 and £25,000 – or around 20%to25%5% of the sum insured, says Heffer.

The Guardian - Money

Nationwide demands extra security if the contents sum insured exceeds £100,000, requiring an alarm that is connected to a centrally monitored station.

The Guardian - Money

After a month had passed, Allianz sent a letter explaining that it couldn't release funds because "your mother was named beneficiary, but obviously the sum insured could not be paid out because she had left Germany," adding, "We assume that we subsequently had to pay out the sum insured to the financial authorities of the Third Reich".

Forbes

However, whether or not an applicant underwent a general medical examination was not related to health characteristics, but to the sum insured only.

BMC Public Health

Human-verified similar examples from authoritative sources

Similar Expressions

53 human-written examples

Ensure that the descriptions of your property are accurately detailed on your insurance schedule and that all details are correct (sums insured, etc).. Notify your insurers or broker in writing if any error is spotted, requesting them to correct the same as a matter of urgency.

WikiHow

Insured perils (multi-peril coverage) as well as premium rates and the sums insured were crop specific.

International Journal of Disaster Risk Science

Characteristics of the insurance contract such as the replacement ratio were not studied because insured persons tend to change the amount of insured daily compensation over the years, hence the sum originally insured would not be an accurate representation of the replacement ratio at the time of sickness absence.

BMC Public Health

In America a citizen can now deposit up to $250,000 in any bank blindly, because that sum is insured by a government scheme: what incentive is there to check that the bank is any good?

The Economist

It is an insurance which pays out a lump sum if the insured is diagnosed with a long-term illness.

Independent

Expert writing Tips

Best practice

When discussing insurance policies, clearly state the "sum insured" to avoid ambiguity about the coverage amount. For example, "Ensure the "sum insured" adequately covers the cost of rebuilding your home".

Common error

Avoid basing the "sum insured" on the market value of a property; instead, use the rebuild cost. Insuring for market value can lead to overpaying premiums without increasing actual coverage for potential damages.

Linguistic Context

The phrase "sum insured" functions as a noun phrase within the domain of insurance, denoting the total financial amount for which something is insured. Ludwig AI shows that it's essential for defining coverage limits.

Expression frequency: Uncommon

Frequent in

News & Media

40%

Science

30%

Wiki

10%

Less common in

Encyclopedias

5%

Academia

5%

Formal & Business

10%

Ludwig's WRAP-UP

In summary, "sum insured" refers to the maximum amount an insurance policy will pay out. Ludwig AI confirms that this phrase is grammatically correct and used primarily within the insurance industry. It's important to determine the accurate "sum insured" based on factors like rebuild cost rather than market value to ensure adequate coverage. Related phrases include "insured amount" and "coverage amount". When writing about insurance, it's crucial to use precise language and avoid ambiguity. Remember that using clear and direct language helps to ensure people understand the coverage that is provided.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

insured amount

Replaces "sum insured" with a more concise term using an adjective to describe the amount.

coverage amount

Substitutes "sum insured" with a term focusing on the coverage provided by the insurance.

policy limit

Replaces "sum insured" with a term indicating the maximum limit of the insurance policy.

amount of coverage

Rephrases "sum insured" to emphasize the extent of protection offered by the insurance.

insured value

Substitutes "sum insured" to highlight the monetary value that is insured under the policy.

maximum payout

Replaces "sum insured" to emphasize the maximum amount that will be paid out in a claim.

benefit amount

Substitutes "sum insured" to focus on the benefit received from the insurance coverage.

coverage level

Rephrases "sum insured" to indicate the degree or extent of the insurance protection.

insurance coverage amount

Adds "insurance coverage" to "amount", specifying the type of coverage being referred to.

financial protection amount

Substitutes "sum insured" to emphasize the financial protection aspect of the insurance.

FAQs

How is the "sum insured" determined for a home insurance policy?

The "sum insured" for a home insurance policy should be based on the rebuild cost of the property, not its market value. This ensures that you have enough coverage to rebuild your home if it's completely destroyed.

What happens if the declared "sum insured" is too low?

If the declared "sum insured" is too low, you may be underinsured and might not receive enough money to cover the full cost of repairs or rebuilding in the event of a claim. It's crucial to accurately assess the rebuild cost of your property.

Is "sum insured" the same as "sum assured"?

"Sum insured" and "sum assured" are often used interchangeably, but "sum assured" is more commonly used in life insurance contexts, while "sum insured" is frequently used in property insurance.

What factors affect the "sum insured"?

Factors that affect the "sum insured" include the size of the property, the cost of materials, labor costs, and any unique features of the building. Regular reassessment is recommended to keep the coverage adequate.