Page 66 - Execuline - Classic Policy Wording

All Risks
What if you are under-insured?
If you have insured your property for less than its replacement value – i.e. you are under-insured – then you will have to bear a proportion of any loss in the event of a claim. In calculating this, we will apply the principle of average.
Being under-insured
Your diamond ring is insured with us for R40 000, but the cost to replace it is R80 000.
This means you are under-insured by half (or 50%). So if R10 000 worth of the diamonds are lost, we can pay out only half of R10 000 – or R5 000. Equally, if the ring is lost, we pay only half of the replacement value of R80 000 – or R40 000.
64 HPL – Execuline – Classic Personal Insurance Policy – 6 July 2015