Policies
Coverage
V2
Buying coverage
Any user can by coverage on the platform (become Policy Holder) from any pre-existing Coverage pool on the platform. You can read more on their creation in the Coverage pools section.
Below is a simplified FAQ for buying coverage. We still recommend that you also review our whitepaper for all of the details around this process.
Where can I see the coverage pools available?
How much does the cover cost?
Three factors determine the price of cover. As each of the goes up, the price of the coverage (Premium) also goes up:
- The utilization ratio of the pool (the ratio between cover bought and cover provided, pools with higher utilization ratio are considered riskier and thus more expensive to purchase cover from)
- The duration of the cover which you want to buy
- The amount of cover which you want to buy
Where can I see exactly how the price is formed?
For what duration can I buy cover?
The duration may be between a minimum of 1 week and a maximum of 52 weeks. This may be altered in later versions or may differ between different types of coverage products.
The actual duration of the cover is calculated in epochs (1-week intervals) which start and end on specific days. In practice, a user can purchase a policy with an actual duration of less than one whole week if the purchase was made in the middle or at the end of an epoch. Read more on epochs in our whitepaper.
Can I purchase multiple covers?
If they are from different pools - yes! However, in V1 of Brudge Mutual, you can only have 1 active cover per pool. This limitation will be lifted in a future version of the app.
A Coverage Event occurred. How do I make a claim for the cover which I bought?
Last modified 1mo ago