This is a condition included in some home insurance policies that limits what you can claim if you are under-insured. For example, if the contents of your home are worth €40,000 but you insure them for just €20,000 you are under-insured by 50%. If your contents are damaged, destroyed or stolen, the most you will get from your insurance company is 50% of the total damage. This means that if there was damage to the value of €5,000 you will only get €2,500 less your excess. Get your insurance covered reviewed each and every year.