What is the proportional rule in home insurance?

If at the time of the loss, the insured capital is less than the replacement value of the items insured, when calculating the compensation for the damage, the Insurance Company considers the ratio of the capital insured in the policy to the new value of the insured items at the time of the loss.

Where the capital insured is greater than the new value of the insured property, the company will compensate for the damage actually caused.