Page 51 - Hollard - Private Portfolio Policy Wording

Household contents
What if you are under-insured?
If you have insured your contents for less than its replacement value – i.e. you are under-insured – then you will have to bear a propor on of any loss in the event of a claim. In calcula ng this, we will apply the principle of average.
Example
Your household contents are insured with us for R200 000, but the cost to replace all the items is R400 000.
This means you are under-insured by half (or 50%). Put another way, you are only ever insured for half of any claim you make.
So if R50 000 worth of your contents is stolen in a the , we can pay out only half of R50 000 – or R25 000.
The pay-out is calculated as follows:
Replacement value Sum insured Contents stolen
Under-insurance calcula on:
R200 000 R50 000 R400 000 X 1
R400 000 R200 000 R50 000
= R25 000
Hollard Private Por olio 49