# Indemnity

*Insurance — Finicade finance glossary*

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.

**Also known as:** indemnify, principle of indemnity

**Related terms:** [Insurance](https://finicade.com/glossary/insurance), [Insurance Claim](https://finicade.com/glossary/claim), [Subrogation](https://finicade.com/glossary/subrogation), [Liability Coverage](https://finicade.com/glossary/liability-coverage), [Replacement Cost vs Actual Cash Value](https://finicade.com/glossary/replacement-cost-vs-actual-cash-value)

Source: https://finicade.com/glossary/indemnity