Okuzeka
Insurance vocabulary · Coverage & Exclusions

Sum insured

Meaning in insurance, with examples

nounCore term

In insurance, sum insured means: The maximum amount an insurance company will pay under a policy, usually based on the value of the property or the amount chosen for a life policy.

In Turkish: sigorta bedeli, teminat tutarı

How it is used

Shown on every policy schedule. Customers set or increase the sum insured, and underwriters check that it matches the real value. If it is too low, the property may be underinsured.

Example sentences

  1. We recommend a sum insured of at least 4 million lira for the building.

  2. The sum insured for the machinery hasn't been updated since 2021.

Common collocations

  • increase the sum insured
  • total sum insured
  • adequate sum insured
  • sum insured per item
  • underinsuranceA situation where the sum insured is lower than the real value of the property, so the insurer may pay only part of a loss.
  • policy limitThe highest amount an insurance company will pay, either for one claim, for one type of cost or for all claims during the policy period.
  • coverageThe protection a policy gives: which risks, losses and amounts the insurance company will pay for.
  • premiumThe amount of money a customer pays to an insurance company for a policy, usually once a year or in monthly instalments.

More terms: Coverage & Exclusions

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This page explains English vocabulary for learners. It is not financial advice.