Sums insured represent the declared value of property or interests covered under a policy and form the basis for calculating premiums and applying underinsurance provisions like average clauses. Accurate valuation of buildings, contents, and business interruption exposures is critical to avoid coverage gaps, especially in periods of high inflation or supply‑chain disruption. Insurers work closely with brokers, surveyors, and clients to validate sums insured, often using valuation services and data tools to maintain adequacy over time.
