We must point out the very important condition of average that will apply to any insurance policy.*

This means that you must insure any item to its full value. Failure to do so can result in that item

being affected by average. If you were to insure an item for 50% of its total value, and that item

suffered a loss or damage, the total amount claimed for will be reduced by 50% of the cost of the


Please note the following basic case study:

Mike declared his sum insured as £100,000. A fire occurs and damages the properly severely,

resulting in £40,000 worth of damage. A loss adjuster is appointed to the handle the claim, and

assesses that the building is underinsured & should in fact be insured for £200,000. Mike’s claim will

now be affected by average. As Mike has underinsured his building by 50%, his claim settlement will

be reduced by 50%. Mike will therefore receive a settlement figure of £20,000, instead of £40,000.

We must therefore strongly advise, that you insure your buildings, contents, stock, commercial vans

or any other insurable item for its correct value.

If you do not know your sums insured and you are insuring a building, we would advise that you

refer to the survey that you should have when purchasing your property. This should provide a sum

insured for insurance purposes. For any other item, we would advise that you obtain a valuation

before providing sums insured.

Remember, do not guess your sums insured, seek the advice of a professional if you are in any