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Personal Motor and Home insurance

Families spend most of their income on their homes, vehicles and the contents of their homes, so it is extremely important to protect those assets against financial loss. The best way to protect the assets that are built up over the years, is to take out insurance cover that will repair or replace such assets when disaster strikes.

Our target markets in the personal lines space are as follows:

Building cover provides protection against financial loss to the owner of a building, generally a private home, if the building were to be damaged or lost due to any of the insured causes of damage or loss covered by the insurer.

Insured causes (perils) of loss or damage may include fire, lightning and explosion, storm, wind, water, hail or snow, earthquake, bursting of geysers, impact by animals, vehicles, aircraft or aerial devices, collapse or breakage of aerial systems and satellite dishes, theft or attempted theft, burglary, leakage of oil from oil heaters, malicious damage, subsidence or landslip, although some insurers offer cover for other possible perils.

This cover depends on the sum insured you choose, based on the replacement costs to repair or restore your building to its condition before the loss or damage.

It is important to include the replacement value of your boundary walls and gates, swimming pool, paving etc.

Building cover excludes losses due to lack of maintenance.

The principle of “average” or “underinsurance” applies to building cover. It means that you, as the policyholder, are responsible for part of the replacement costs if the replacement value of your building (house) is more than the insured amount.

The principle of “average” or “underinsurance”

The best way to explain this is by way of an example:

The costs to rebuild your buildings
Insured value
Loss
Insurer’s portion of claim
Insured’s portion of claim

- R1 000 000
- R750 000 (75%)
- R100 000
- R75 000 (75%) less excess
- R25 000 (25%) plus excess

Contents cover provides protection against financial or physical loss or damage to your property inside your home. All movable items inside your home that you would take with you when you move to another house, would be considered as the contents at your home. Contents may be insured comprehensively (against all insured events described by the insurer in the policy wording) or on a limited basis which normally excludes theft or burglary cover.

Contents claims are settled on a “new for old” basis. This means that the damaged or lost item will be replaced with a brand new item. It is therefore important to insure your contents at the replacement value, which is based on the new price of insured items.

We could introduce you to professional businesses that specialise in the valuation of contents. These businesses charge a very reasonable fee for this service. The advantage of such a service is peace of mind about the replacement value of your contents and that no average (read the information about the principle average) would apply in case of a claim. Such a service also gives you the advantage of knowing that claims may be finalised quickly, because you would not need to prove ownership or replacement value at the time of the claim.  If you do not want to use such a professional service, we urge you to prepare a proper inventory (list of items you own) and that you update your inventory once a year. If you need help, please download the inventory form that we prepared as a guide. You are welcome to send us the inventory information, backed up with photos of the most valuable items, so that we can keep it safe and available in case of a claim.

The principle of “average” or “underinsurance” applies. It means that you, as the policyholder, are responsible for a part of the claim if the replacement value of your contents is more than the insured amount.

The principle of “average” or “underinsurance”

The best way to explain this is by way of an example:

The cost to replace your contents
Insured value
Loss
Insurer’s portion of claim
Insured’s portion of claim

- R500 000
- R400 000 (80%)
- R20 000
- R16 000 (80%) less excess if applicable
- R4 000 (20%) plus excess if applicable

All Risks cover is provided according to a specific section of your policy, offering protection for items of a personal nature that you regularly remove from your home. The section covers items that are carried on your person or that are designed to be carried on your person. The cover is provided in two different subsections, as unspecified cover or as specified cover.

Unspecified cover provides cover for clothing and personal effects that are carried on your person or that are designed to be carried on your person on a daily basis when you are away from your home. For this section, you choose a collective sum that will cover all the random items that you may carry with you, but that do not require specific individual insurance. Insurers do exclude certain items under this section and require that the policyholder specify those items under the specified cover section. Under this section insurers limit the amount that you can claim for to 20% of the sum insured per item with the collective replacement value of all items claimed for not being more than the total sum insured for this section.

Specified cover provides cover for specific items that are listed individually in the section. These items include the items excluded under the unspecified cover section and must be listed separately with a full description, make and model, serial numbers and value of each item.

Vehicle cover provides protection for all privately owned vehicles such as cars, motorcycles, trailers or caravans against loss of or damage to the insured item. Three options are available:

  • Comprehensive cover – Covers all the insured events described by the insurer, such as theft, hi-jack, accident, fire, third party damage, hail etc.
  • Limited cover – Covers all of the above, but excludes own damage to the insured vehicle because of an accident.
  • Third part cover – only covers damage to the third party vehicle. The insured’s vehicle is not covered at all.

We use the retail value of your vehicle as the basis for the comprehensive and/or limited cover. We also add the value of non-standard accessories that you specify.

It is important to name the regular driver of the vehicle and the registered owner. You also have to specify the address where the vehicle is kept and describe the class of use according to the policy requirements.

Watercraft cover provides protection against loss of or damage to watercrafts such as boats and jet skis. Cover of these items depends on replacement value. Replacement value is affected by additional accessories and outboard motors fitted to these crafts.

Liability cover provides protection for the insured person when a third party suffers financial loss due to an incident that could have or should have been prevented by the insured and the third party requires the insured to pay for the loss or damage. Possible claims include accidental death, bodily injury or illness of any person, as well as accidental physical loss or damage to tangible property of any person, anywhere in the world.

Personal accident cover provides protection in case of death and/or disability as a result of any accident. This cover provides protection even in the event of partial physical bodily loss, such as the loss of a limb or a body part. The cover is provided as percentages of the total cover (sum insured) and details of the percentages, based on the sum insured are available in the policy wording.

Car rental – If your comprehensively insured vehicle is involved in an accident or is stolen, you will be supplied with a rental vehicle while your claim is being finalised, up to a maximum period of 30 days. This cover provides various vehicle options to choose from. Such cover is provided as an additional section and an appropriate premium is charged based on the class of rental vehicle chosen.