A claim for £2,000 has been filed on a household contents insurance policy with a sum insured of £25,000. When could the policyholder receive less than £2,000?

The scenario where the policyholder could receive less than £2,000 relates to the existence of a single item limit within the household contents insurance policy. A single item limit specifies the maximum amount that the insurer will pay for any one particular item if it is lost, stolen, or damaged.

If the claim for one specific item exceeds this limit, the policyholder might only be compensated up to that limit rather than the full claimed amount. For example, if the limit for a single item is £1,500 and the policyholder files a claim for an item worth £2,000, they would only receive £1,500, which is less than the total claim amount.

This policy feature is critical to understand as it can significantly affect the amount an insured individual receives in the event of a claim, especially if high-value items are involved. The other options do not directly relate to the situation in a way that would lower the claim amount received for an insured loss.