, 0 0 0 . ▁You ▁ins ure ▁it ▁for ▁$ 1 0 , 0 0 0 . ▁You ▁suffer ▁a ▁loss ▁of ▁$ 5 , 0 0 0 . ▁If ▁your ▁policy ▁is ▁‘ subject ▁to ▁average ’ , ▁the ▁maximum ▁amount ▁that ▁you ▁may ▁recover ▁will ▁be ▁$ 2 , 5 0 0 .” ▁ ▁To ▁remove ▁the ▁risk ▁of ▁home own ers ▁unw itting ly ▁falling ▁into ▁an ▁under ins urance ▁trap , ▁New ▁Zealand ▁has ▁legisl ation ▁to ▁ban ▁the ▁use ▁of ▁average ▁cla uses ▁for ▁dwell ing ▁houses . ▁ ▁C argo ▁ins urance ▁▁ ▁The ▁history ▁of ▁average ▁cla uses ▁began ▁with ▁cargo ▁ins urance . ▁Here , ▁if ▁a ▁proportion ▁of ▁a ▁cargo ▁had ▁to ▁be ▁thrown ▁over board ▁in ▁storm ▁to ▁save ▁the ▁ship , ▁all ▁cargo ▁own ers ▁and ▁the ▁ship owner ▁would ▁joint ly ▁make ▁good ▁the ▁loss ▁to ▁the ▁owner ▁of ▁the ▁cargo ▁thrown ▁over board , ▁including ▁the ▁those ▁that ▁occurred ▁the ▁loss . ▁The ▁share ▁each ▁of ▁the ▁own ers ▁would ▁pay ▁would ▁be ▁based ▁on ▁their ▁proportion ▁of ▁the ▁total ▁value ▁of ▁cargo ▁or ▁ship . ▁This ▁is ▁commonly ▁term ed ▁the ▁law ▁of ▁general ▁average . ▁ ▁A verage ▁cla uses ▁can ▁cause ▁problems ▁with ▁claims ▁made ▁during ▁periods ▁of ▁vol at ility ▁in ▁comm od ities ▁mark ets . ▁For ▁example , ▁if ▁cru de ▁was ▁being ▁sh ipped ▁from ▁one ▁part ▁of ▁the ▁world ▁to ▁another , ▁and ▁a ▁partial ▁loss ▁occurred , ▁if ▁its ▁current