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A common reason why people sometimes don’t get the full value of their insurance claim is that they have not insured their property for the correct amount.

Many policies have an average clause which may result in reduced payment if the damaged property is underinsured.

Often the property is unintentionally underinsured and in any case the savings on the premium is very small in comparison to the potential problems that can result in the event of a claim under your insurance policy.

For useful information on how underinsurance could cost you a lot of money in the event of an insurance claim and for useful information on choosing the appropriate sum insured.

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