Never insure the property and/or contents for less than their as-new value since, in the event of a claim, this could lead to a significant reduction in the compensation for damages.
Imagine a property is valued at €42,000 and is insured for €21,000. This means that only 50 % of it is insured.
If an incident causes €18,000 worth of damages, the compensation would be for €9,000, meaning the insured party would only receive 50 % compensation.