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Insurance

Indemnity

Also called: indemnify, principle of indemnity

Indemnity is the principle that insurance restores you to your position before the loss — no better. It's why you can't insure a $200,000 house for $500,000 and collect, and why you can't claim the same loss from two insurers. Life insurance is the deliberate exception, since a life has no market value, which is why it requires an insurable interest instead.

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