A prior condition to losses being indemnified by the Consorcio is that they are evaluated by the Adjusters designated for that purpose by the Consorcio.

Repair or replacement

Stating from the point that the coverage of these risks should include the same insured items or persons, and for an identical sum insured as that established by the other risks contemplated in the ordinary insurance policy, the indemnity to be made effective in the event by the Consorcio will consist of the costs of repair or replacement of the damaged items (in the case of automobiles, the corresponding market value immediately prior to the occurrence in the case of a total loss), and on the basis of the amount that figures as the sum insured in the insurance policy that has been contracted. Also taken into account will be agreements that have been included in the policy on an optional basis ("new replacement value", "first loss basis", o "with a limit of indemnity", etc.).

It should be noted that in the event of direct damages, the Consorcio will apply compensation for those sums corresponding within the same policy for buildings and for contents.

Likewise, the proportional rule will apply in the event of under-insurance, although for these purposes all of the sums insured for the damaged items will be taken into account even though they are in different policies that carry a Consorcio surcharge.

Additional expenses

Included in the indemnity are the costs of mud clearance and extraction, demolition, removal of debris and transportation to a dump or authorised waste disposal site, with a joint limit of 4 percent of the sum insured. Excluded from these infemnifiable expenses are those of cleaning and clearing public river beds, canals, reservoir basins or ditches and the dredging of sea beds; the drainage of infrastructure works and those deriving from the fees of the professionals designated by the insured to carry out the adjustment of the loss.

Loss of profits

The terms of the cover with regard to the quantification and indemnification of loss of profits losses will be those set out in the ordinary policy.

Consorcio deductibles

In the case of insurance of persons there will be no deduction as a deductible, whereas in the case of policies insuring against damage to goods, and when the losses are the result of direct damage, the deductible which will be for the account of the Insured will be 7 percent of the amount of the indemnifiable damage. However, this deductible will not apply to damage to automobiles covered by a motor insurance policy, to dwellings or to communities of dwellings.

In the case of loss of profits cover, the deductible which is for the insured's account will be that established in the policy, be it in terms of time or amount, for losses that are the result of ordinary loss of profits claims. Should there be different deductibles for ordinary loss of profits claims, those established for the main cover will apply.

The deductibles will be applied to every loss and every risk situation to which the items subject to the insurance cover are exposed.

The coverage of extraordinary risks as foreseen by the Law is considered to be the minimum obligatory protection, for which reason, if the risks are covered by an insurance company then a lower deductible might be applied or there may even be no deductible applied. However, if the private policy does not pick up the cover and it is the Consorcio that picks it up, then the above deductibles will always apply. In this case, the insurance entity that issued the ordinary policy may, should it so wish, void the effects of the deductible and assume responsibility for it and it alone, without this signifying that the private insurance entity is covering extraordinary risks or therefore, that the actuation of the Consorcio is excluded.