Sum insured too low?
Underinsurance and the Average Clause (UK)
Underinsured by 30%? Your UK insurer pays 30% less. See how the average clause works and how to fix it.
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The short answer
If you are insured for less than the true rebuild or replacement value, UK insurers apply the 'average clause' and reduce every claim by the same percentage you're underinsured. Get a professional rebuild cost assessment (RICS) and use the ABI contents calculator annually.
Frequently asked
- Does sum insured = market value?
- No — buildings cover should equal rebuild cost, which is usually lower than market value but rises with construction inflation.
Your policy is the only source of truth
Stop guessing. Check your actual policy.
Generic answers don't pay claims. PolicyPal reads your policy wording in seconds and tells you, in one sentence, whether you're covered.
Upload your policy$7 per analysis · No subscription · PDF only