Insurance Inflation Protection

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    Insurance Inflation Protection

    I've renewed annually with the same insurer for past 6yrs. My policy states:

    Inflation Protection
    The sum insured shown on your Schedule will be adjusted in line with a recognised index. Please note that if we selected your sum insured for you, the sum insured shown on your Schedule will not be adjusted.

    No extra charge will be made for any increase until the renewal of the policy, when the renewal premium will be based on the adjusted sum insured and limits.
    I've been been somewhat complacent when checking my renewals and just assumed this has been applied, like it is on all my policies. Unfortunately, now that I am making a claim it turns out that I am underinsured and this has been exacerbated by the fact that no increases were applied for three years running. It was automatically raised by a total of 4.8% in the last two of the past five years but according to the RICS index the cover should have increased by 20% in that period.

    General feedback I am getting is that the clause is pretty meaningless because it is up to me to check that it has been applied in the way that they claim they will upon each renewal. Does anyone have any insight on whether this completely absolves the insurer?
    Assume I know nothing.

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