Insurance is really about protecting the things important, both
personal and business, against the unexpected. So, anytime you have
significant events or changes, it's time to think about your reviewing
and updating your coverage. Here are some examples: Changes of
information could affect your cover and your premium, so you should
inform us of them immediately.
Personal
A change in marital status
New drivers in your household
Paying off a car loan
Buying a home
Moving to a new apartment
Home improvements
Approaching retirement
Purchasing jewelry, antiques, computer equipment or other expensive items
Business
Starting a new business
Seasonal increases in inventory
Expansion plans - equipment, vehicles or physical plant
Under-insurance means you do not have adequate insurance to cover the full replacement value of the assets you have insured. For example, let's say you insured your household contents for R80 000 and your house is broken into. Goods with a replacement value of R30 000 are stolen which you claim under your Home Contents policy with a Insurance Company. Following assessment, it is found that the current replacement value of your total Household Goods before the theft was actually R100 000 and not R80 000 as insured. This means that you were underinsured by 20% and we will pay only 80% of your claim, i.e. R24 000 and not the R30 000 claimed.
To have an insurable interest in an item, you would stand to suffer direct, measurable, financial loss if the item were lost, damaged or destroyed. For example, your TV set to the value of R2 000 has been stolen from your home. As the owner of the TV you haven suffered a measurable loss of R2 000 because you have a financial (insurable) interest in the TV set.
We recommend that you assess the value of your home or office
contents regularly to ensure that you are covered for the correct
amount. Bear the following in mind:
The replacement values of goods change over time.
If your policy is not reviewed and the higher replacement value is not taken into account, cover becomes inadequate.
You – or an expert – need to make a realistic estimate of the true replacement value of your insurable assets, equipment etc.
Update
your household / office inventory list and list of other assets on a
regular basis to ensure that any new items are included and remove items
that that you no longer have.
Tips for completing a Inventory
Move methodically from room to room in your home / office, and assess item by item.
Record the make, models and serial numbers of major appliances.
Retain your original purchase documents such as invoices and operating manuals.
Most policies limit cover for expensive items such as jewellery, artworks, stamps and coins, furs, rugs and loose carpets.
You may need to insure these items separately with a Specified All Risks policy.
To determine the value of the items it may be easier to use the store catalogues, or to visit an online shopping site.