SA Home Insurance Hints |
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14 May - South African home insurance policies need to be updated on an annual basis, but most of us do not do this which explains why South Africans are severely underinsured when it comes to short term coverage. But why must SA home insurance policies be revised so regularly? The answer is simple: when your car is replaced by an insurance company they use the current market value of the vehicle, but with other possessions insured within the home the replacement value is used. Let's say you bought a painting ten years ago and it cost R10,000. If that painting is stolen or destroyed a decade later the replacement value could now be R20,000. Unfortunately most South African home insurance policies are not updated often enough, and the result is that valuables are underinsured. If the policy says that the painting is only worth R10,000 then that is what you will receive, so the onus is once again on the policy holder to make sure that his possessions are insured for the correct value. Do you have adequate coverage? For millions of South Africans the answer is no according to research recently published by Santam, which found that 4 out of 10 policy holders do not have sufficient coverage! You have to remember to add new purchases to the contents list of your policy besides taking into account the appreciation of those items that are already on the list. If your household contents are insured for a total of R100,000 and the actual replacement value of those goods is R200,000 then in the event of a home burglary you will lose out on a substantial amount of money. If the items stolen equal R50,000 cost for replacement the insurance company is only going to pay out R25,000 - because you are underinsured. Related Insurance Articles: * How To Find The Right Financial Advisor * Why It Is Business Insurance Time * South African Holiday Insurance Tips * Why it is Important to Insure your Cell Phone * How to Recognise Bad Insurance Companies * Do Not Let Economic Pressure Sacrifice Insurance * Be Safe and Save on Insurance * Hints for First Time Insurance Buyers 
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| 2/22/2011 3:54:24 PM | |||||||||||||||||||||
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