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.
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 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.
A Coverage Event occurred. How do I make a claim for the cover which I bought?
This is described in more detail in the next section.