NEWS

Under Insurance

17/02/2020

Is your property underinsured? If so it will be subject to average clause.

 

The term 'subject to average' means that if the sum insured at the time of a loss is less than the insurable value of the insured property, the amount claimed under the policy will be reduced in proportion to the under-insurance. Also called average clause.

 

If a policy of insurance covering a building has a sum insured of £80,000 and at the time of a loss the real insurance value is £100,000 then the proportion of Average  would be £80,000/£100,000 or 80%. You will only receive 80% of any loss you suffer.

 

If you think you may be underinsured seek advice asap.

BACK
© Merrifields 2020
Developed by Alcium Software
This site uses cookies for analysis purposes only. This helps us understand how you and other visitors use our site. To see a complete list of these cookies or to opt out please access our cookie policy page.

You will see this message only once, but you will be able to find more information about our use of cookies or opt out at any time.