There is a serious issue present with businesses and people "under-insuring" their assets, and many renew policies every year with little or no thought into the process behind it. However, fast-forward time for a claim, whether this is for a partial value of the whole sum insured or the entire value, an insurer may assess the value of that property as part of the claims processing routine. If the insurer discovers that the claimant is “under-insured” they may “apply average”
