House of cards

Every household policy contains an instruction which reads: "It is your responsibility to make sure that the amount you insure for represents the full value of the property concerned." The trouble is, very few people do so.

This can cause problems for brokers and insurers at the claims stage.

Household policies sometimes contain an average clause, meaning that if there is underinsurance, any claim will be reduced proportionately. Averaging is normal in commercial lines, but uncommon in househo