From: "JethroUK©" 
Newsgroups: uk.finance
Subject: Re: Contents Insurance valuation
Date: Tue, 28 Feb 2006 17:48:49 GMT


"Peter Lawrence"  wrote in message
news:4404866c.3398364@text.news.ntlworld.com...
> On Mon, 27 Feb 2006 19:54:38 GMT, "JethroUK©"  wrote:
>
> >
> >
> >basically you're only covered for that which you insure - if you insure
your
> >'whole' contents @ £5 and the 'whole' contents are destroyed/stolen then
> >they owe you £5 - no maths - they obviously dont care if a million quids
> >worth went up in smoke
> >
> >the maths only come into play if you insure your 'whole' contents @ £5
and
> >50% get destroyed/stolen and you are actually found to have £40 worth of
> >content - the insurers simply say that because your only insured quarter
of
> >your contents then 3/4 of what was destroyed wasn't insured - it's fair -
> >ergo they only give you 25% (quarter) of your claim (pro-rata)
>
> Then they are being over-generous!  If you have £40 worth of contents
> insured at £5 value then 7/8 of what was destroyed was not insured so
> they should only pay out 12.5% )1/8) of your claim.
> --
> Peter Lawrence

excuse my maths but the principle stands - if it's full claim you get back
whatever you insured for (irrespective of actual value) - no maths

it's only in case of partial claim 'and' where you're under insured, that
insurers (quite rightly) calculate the diff & pay out pro-rata