Under-insured building

Hi

When I bought my apartment, I was advised by my solicitor that the apartment block that I bought into appeared to be under-insured by what she thought was a significant amount.  When I mentioned this to one of the members on the executive committee, s/he said there was no point in increasing the insurance as the block of land was worth more than the building itself.  However, as I've just joined the committee, I'm concerned about this lack of insurance.  I've been told by friends that if anything happened to the building, the insurer would not be obliged to pay out the insured amount.  There is also the risk that members of the executive committee would be liable for the under-insurance.  Is this correct?  What problems can occur if a building is under-insured?  Are there any additional risks if the building is knowingly under-insured?  Thanks.