▁covered ▁as ▁part ▁of ▁the ▁policy . ▁ ▁Due ▁to ▁the ▁potentially ▁high ▁short fall ▁bur den , ▁some ▁countries , ▁not ably ▁New ▁Zealand , ▁mand ate ▁that ▁all ▁policies ▁subject ▁to ▁average ▁have ▁the ▁policy holder ▁acknow ledge ▁the ▁ris ks ▁of ▁under ins urance ; ▁the ▁stat ute ▁giving ▁the ▁following ▁example ▁to ▁be ▁incorpor ated ▁into ▁the ▁policy : ▁ ▁“ The ▁Mean ing ▁of ▁Sub ject ▁to ▁A verage ▁“ ( 1 ) ▁Your ▁ins urance ▁policy ▁contains ▁a ▁provision ▁making ▁it ▁‘ subject ▁to ▁average ’ . ▁“ ( 2 ) ▁That ▁provision ▁will ▁have ▁effect ▁only ▁if ▁the ▁property ▁ins ured ▁under ▁the ▁policy ▁is ▁under ins ured ▁at ▁the ▁time ▁of ▁loss . ▁“ ( 3 ) ▁If ▁the ▁property ▁ins ured ▁under ▁the ▁policy ▁is ▁under ins ured ▁at ▁the ▁time ▁of ▁loss , ▁the ▁following ▁rules ▁apply : ▁“ ( a ) ▁If ▁you ▁suffer ▁a ▁total ▁loss , ▁the ▁provision ▁will ▁have ▁no ▁effect : ▁“ ( b ) ▁If ▁you ▁suffer ▁a ▁partial ▁loss , ▁the ▁maximum ▁amount ▁that ▁you ▁may ▁recover ▁will ▁bear ▁the ▁same ▁proportion ▁to ▁your ▁actual ▁loss ▁as ▁the ▁amount ▁for ▁which ▁the ▁property ▁is ▁ins ured ▁be ars ▁to ▁the ▁full ▁value ▁of ▁the ▁property : ▁“ ( c ) ▁Wh atever ▁your ▁loss , ▁in ▁no ▁case ▁will ▁you ▁be ▁entitled ▁to ▁recover ▁more ▁than ▁the ▁amount ▁for ▁which ▁the ▁property ▁is ▁ins ured . ▁“ Example : ▁Your ▁property ▁is ▁worth ▁$ 2 0