Adequacy of Sums Insured and Under Insurance

It is vitally important that your chosen sums insured are adequate to compensate you for the full replacement cost in the event of a total loss.

If the sum insured does not adequately reflect the full reinstatement/replacement value of the exhibitors’ property, then the Average Clause (Under Insurance) will apply. This means that any claim notified to us may be reduced in proportion to the percentage of under insurance.

Example:

If you choose a sum insured of £10,000 but the actual replacement/reinstatement value of the total Model Railway Exhibitors' property was £20,000, then you have under-insured by 50%. Therefore, any future claim settlement could be reduced by 50%, under the policy ‘Average Clause’, so settlement of a Theft claim for £5,000 may be reduced by 50% and settled at £2,500.

What Should be Included within the Model Railway Exhibition Contents Sum Insured?

You should include ALL official exhibitors’ property (Excluding traders as they would be expected to have their own business insurance and are excluded from the cover provided under our Model Railway Exhibition Insurance policy).