Insurance is a contract are covered, by paying a premium, the possibility of a risk or not may occur during the period in which we are covered by the same (generally the annuity).
More precisely, according to the Insurance Act *:
" The insurance contract is one for which the insurer undertakes, by charging a premium and if the event occurs whose risk is hedged to indemnify, within agreed limits, the damage to insured or meet capital, income or other benefits agreed ".
Then we make for the possibility that, by chance, an event or contingency that generates a need for repair on our goods occurs, and especially those of the third with whom we interact every day (neighbors, pedestrians, drivers people, etc.).
Contingency
Contingency is possible, uncertain and future event, capable of causing damage which a capital need arises.
This event or event, so you can ensure, should be:
-Possible, because otherwise would not exist if there were insecurity and insecurity, there would be safe,
-Incierto, because if it will necessarily happen, nobody would assume the obligation to repair it.
The risk
No risk can not be sure, becausethe absencethe possibility that the harmful event occurs, or may be hurt or think will fit any compensation.
The risk has certain characteristics that are:
uncertain and random -es
-Possible
-Concrete
-licitus
-Fortuitous
-of economic content
Insurance contract
An insurer (insurance company) can not take the risk in an abstract way, but delimits through the insurance contract. As each personal situation or things is different, so is the risk tohedged.
Therefore, an insurance contract describes a risk that must be duly individualized, because not all risks are insurable, which delimits and individualizes within the contractual relationship.
* Insurance is regulated by Law 50/1980, of 8 October, Insurance Contract Act.