There are a number of steps to take to avoid being underinsured. These include:

• Complete an accurate upfront assessment of asset values with assistance from valuation professionals and documentary backup where necessary;
• Conduct an annual review of the sums insured on the policy schedule to ensure assets are valued at current replacement values;
• Conduct an annual inventory of assets to ensure that new items are added and old items removed from the policy schedule;
• Seeking assistance from an insurance broker to clarify any valuation grey areas; and
• Complete a valuation of any specialised items (jewellery) or specialised classes of insurance (business interruption) in accordance with the policy endorsements stipulated by the insurer;