Many property policies include an “average” condition: if the sum insured is less than the true value, the insurer pays only a proportion of any claim — even a partial one.

Common causes

• Using book values instead of full reinstatement cost
• Not updating values after expansion or inflation
• Forgetting stock peaks, fit-out or new equipment

What to do

• Commission a professional valuation every few years
• Review values at every renewal
• Ask about declaration-linked or day-one uplift options

Speak to us about a risk and valuation review.