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Only paying 50% of claim

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My insurers will only pay 50 percent of my claim; because they say I am underinsured and the claim is subject to Average. But the claim was only R50, 000 and the total cover was R100, 000. How can they justify that?

You must understand what is meant by the application of "average". The insurer is saying that at that time of the claim their investigation showed that the total value of all the contents insured under the policy was in fact well over the cover of R100, 000. In fact, it was round about R140, 000, all of which was at risk. If their figure was correct, they were entitled to deduct R20, 000 or 40% from the amount to be paid under the claim. In some instances, the insurer will come and look at the goods covered before the insurance policy is taken out and they then may not be able to argue the figure that they themselves have suggested. However, every time you buy something new and add it to the contents, you may well be increasing the value of the total contents and you should then look at the total of the cover again.