Warehouse · Flood
Payout reduced for under-insurance
- Situation
- A finished-goods warehouse flooded after a storm. Stock on the day of loss was far above the sum insured declared at the start of the year.
- Issue
- The insurer proposed applying average, significantly reducing the settlement.
- How we help
- We checked the stock declaration clauses, compiled monthly records to prove actual values and proposed a calculation consistent with the policy.
- What to do beforehand
- Where stock fluctuates seasonally, use a periodic declaration basis rather than a fixed annual sum insured.
