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If I dont insure for the full amount what would happen in the event of a claim?

April 26, 2017claim event insure

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If I dont insure for the full amount what would happen in the event of a claim?

1 Answer

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If you only insured your building for, say, half of its replacement value then you would only be paid half of the claim. Thats called the average clause. If you dont pay the full premium you cant expect the insurer to pay the full claim. (The same applies to your contents.