Insurance on 2nd hand items

[the eskimo]

You sidestepped the question.

I'll rephrase it, are insurers happy to insure goods at a value decided by the customer which is well under replacement value and come claim time there will be no penalty whatsoever, other than the payout being at the insured value and not at the real replacement value. That despite there being misrepresentation on the policy of the value of the insured goods and hence the risk?

If the misrepresentation is not deliberate, then yes. The payout will be limited to the insured value. The penalty of only being paid part of the replacement value is penalty enough.

Listen to @airborne

This is a fact. If you over insure your items, you do not get that value.

If you under-insure your items, they will do exactly what has been said before. Measure what you insured for overall, and then apply a reduction percentage to the value they pay out.

I'm not disputing this, I'm only disputing that @airborne says that the average is applied to the insured value, average is only ever applied to the value at risk.

But we do need to expand on this. We are not talking about specific items insured.

But, if you have general household insurance, and claim on this, as in a burglary - then they look at how much you insured for versus the entire value of the house.

A friend at work found this out the hard way.

Throughout this thread, we've only ever spoken about a specified item, but you are correct in respect of household insurance.

If you insure your contents for R 1 million, but the actual replacement value is R 2 million, you would only get paid out 50% of the replacement value (not insured value) of the items lost.