Underinsurance is when the value you choose for your buildings, contents or specified items is less than it would actually cost to rebuild or replace them as new. If the values on your Statement of Fact are lower than the true value, the insurer may only pay part of any claim, or in some cases not pay it at all.
For more help with setting the right values for your buildings, contents and specified items, please refer to your policy wording or visit our blog post. If you are unsure whether the values you have selected are correct, please call us on 0330 331 0749.