House of cards

Buying a home can be a gamble and most people would not think of doing so without adequate insurance. However, many fail to get enough cover, leaving themselves vulnerable. Ewan Campbell investigates the solutions to the problem of underinsuring property

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 household