i think Rory is right - if you are under insured, you actual pay out is less by the amount you're underinsured. i have been working with my insurance company to update our insurance (it's a constant thing over the past 18 months or so as i list more of the collections and things)

also take into account things that you may have paid minimal for but are worth a lot more. sales are great for getting linen and books and stuff like that, but to actually replace them it would cost a small fortune. as many have seen, i have quite a collection of Christmas stuff and candle holders and things. most of these are now irreplacable (limited edition stuff) - but i have them insured. my insurance company suggested i keep a list and photographic evidence somewhere that isn't the house. at the moment, that evidence is in mum and dad's fire proof safe as well as our own. we have a copy of their stuff for them as well