Property insurance – what can go wrong?

Property insurance for your home can be one of the most important pieces of insurance you buy.

It is important to ensure your home and valuables are protected and insured for the correct values otherwise in the event of a property insurance claim you may get a reduced amount paid.


You need to ensure that the values you have given as your ‘sums insured’ under your property insurance are adequate. If they are not, in the event of a claim, the ‘average’ condition applies. Under this condition, the amount paid by the insurer in the event of a claim is reduced in direct proportion to the degree of under insurance.

For example, if the cost of replacing your home contents is valued at £100,000 but it is insured for just £50,000, in the event of a property insurance claim, only 50% of your claim will be paid – even if the total value of the claim is less than £50,000. On the basis of this example, if you submit a claim for £30,000, only £15,000 will be paid.

The ‘average’ condition applies to partial losses only, where the property is not totally lost or destroyed. Even though it does not apply to total losses, in the event that your premises or contents are totally destroyed, the most the insurer will pay under your property insurance policy is the sum insured.

Want to know more or discuss your specific insurance needs? Contact us and we will be pleased to help.