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15 June 2016

Underinsured or overinsured?

Insurance policy holders inadvertently take major risks by failing to adjust the sum insured when they add new buildings or equipment or when buildings and equipment are no longer needed. While those underinsured will receive only a fraction of the actual value or even no compensation at all in the case of damage, those overinsured regularly pay excessively high premiums. As the following example shows, third-party valuations minimise these risks.

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