"Underinsurance" is the term for when the insured sum is much lower than the actual value of household goods (including guests' belongings, leased/rented/entrusted objects and a replacement supplement). Underinsurance has negative consequences for the policyholder. Benefits are usually reduced in proportion to underinsurance. Some providers don't follow up on this. However, it is still highly recommended to thoroughly calculate the exact value of your household goods and to adjust it from time to time in order to avoid any unpleasant surprises. Independent from possible underinsurance are insurance benefits for "first risks".
