In practice of conclusion of property insurances often happens that the insurance amount stipulated in the policy is lower than the value of the insured property. It results from the amount of insurance premium and the estimation of risks performed by the insurer.
In this circumstances it is wort to pay special attention to the content of the insurance terms and conditions. The insurers apply provisions according to which in case of occurrence of partial damage the compensation will amount to the proportion of the insurance amount to the actual value of the property. It means that the insured will mostly receive only a fraction the actual damage value.
Such provisions of the insurance terms and conditions has been declared by the courts as not allowed towards the consumers. They also do not bind the natural persons conducting business activity. In case of commercial law companies the questioning of effectiveness of such provision would be however a precedent. That’s why it is wort before the conclusion of the agreement to evaluate the insurer’s offer in this respect.