What does it mean to under insurer and how does it affect me?

When taking out insurance you are required to be as accurate as possible with the value of property or goods you are insuring. This is called the Sum Insured value.

Should actual replacement value be less than the Sum Insured value, then this is under insured.

Under insurance means, in the event you suffer total loss you will not pay for the full value of the claim.

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