Most policies for insurance – be they for buildings or contents or some other tangible property, will “index link” the sums insured. This helps to protect you against inflationary increases, such as the cost of rebuilding your home, to ensure that you are not “under- insured”. If you are under-insured, your insurer can reduce the amount of your claim proportionally or even in some cases refuse to pay the claim at all.

It is obviously vital that the sum insured is set at the correct level in the first place and we would recommend taking expert advice in this regard from a professional expert – such as a Chartered Surveyor for buildings or a professional Valuer for fine art, antiques or jewellery.

Whilst index linking can help protect you from under-insurance, it is always wise to review the adequacy of your sums insured every few years

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