Underinsurance

For example, Income’s SmartBiz 360 package explains that underinsured contents and stock can lead to a proportionate claim payment under its All Risks section.

A useful review starts with an inventory and the valuation basis required by the policy. Do not assume historical purchase prices, book values and replacement costs are interchangeable.

Update the information when stock, equipment or premises change. Ask the insurer how an inadequate sum insured would affect a partial loss, not only a total loss.