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 destroyed due to any of the insured perils.
The insured perils include loss or damage caused by
It is very important to note that insurance policies do not cover the maintenance of your property or wear and tear/gradual deterioration of your property. It provides cover against sudden unforeseen loss of or damage to your property.
Cover depends on the sum insured you choose, based on the replacement costs to repair or restore your building to the condition before the loss or damage.
Please note that neither the municipal, nor the market value is relevant in establishing the value at which you need to insure your property.
The insured amount should always include the replacement value of your retaining walls and gates, outbuildings, swimming pool and pump, paving, borehole and pump, solar panels and accessories, geysers, etc. It should also include demolition costs in case the house burns down and you have to remove the rubble. It should also include professional fees that you would need to pay when a new building needs to be erected.
The principle of “average” or “under insurance” 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 buildings is more than the insured amount.
To calculate the amount the insurer will payout, the following formula is used:
Example:
Sum insured of Building R1 000 000
Replacement Value as per insurer R1 500 000
Damage to property R250 000
To establish the amount the insurer will pay out.
Contents cover provides protection against financial or physical loss or damage to your movable property inside your home. All movable items inside your home on your property that you would take with you when you move to another house, would be considered as the contents of 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, or you will receive the monetary value of the specific item in cases of items such as antiques. It is therefore important to insure your contents at the replacement value, the value based on the new price of insured items.
The principle of “average” or “under insurance” 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.
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 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 the event of a claim.
To calculate the amount the insurer will payout, the following formula is used:
Example:
Sum insured of Contents R500 000
Replacement Value as per insurer R600 000
Damage or loss to contents R100 000
To establish the amount the insurer will pay out
All Risk cover provides protection for items of a personal nature that you regularly remove from your home. The cover is provided in two different subsections: unspecified cover, or 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 daily 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. These items may differ from insurer to insurer. It is therefore important that you discuss your requirements with us. Upon the understanding that the collective replacement value of all items claimed for cannot be 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. Each of these Items must be listed separately with a full description, make and model, serial numbers and replacement value of each item.
Typical items to be covered under this section could include:
Vehicle cover provides protection for all privately owned vehicles such as private type motorcars, LDVs with a Gross Vehicle Mass less than 3 500 kg, motorcycles, trailers, or caravans against loss of or damage to the insured item. Three options are available:
We use the retail value of your vehicle as the basis for the comprehensive and/or limited cover. It is important to also add the value of non-standard accessories to the retail value and adjust for inflation/ increase in value.
It is important to name the regular driver of the vehicle and the registered owner. You must 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 the replacement value. Replacement value is affected by additional accessories and outboard motors fitted to these crafts.
Watercrafts for personal use, means that the hull must not exceed 6 metres in length and includes onboard motors and all other fittings and/or accessories normally sold with the watercraft, including the trailer. Outboard motors, crew’s clothing, sextants, nautical books, oilskins, ski boots, yachting clothing and any other additional or special equipment must be insured separately.
All watercrafts with an engine size smaller or equal to 15 hp, do not require a skipper’s licence. For all other vessels, the skipper must have a licence and the skipper must provide a certificate of fitness, as well as a certificate of buoyancy for the vessel.
Watercrafts for business or commercial use, or vessels owned by a company, must be insured commercially.
Additional liability cover for skiers and third parties is available on request.
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 carnage. 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 of the insured because 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). Details of the percentages based on the sum insured are available in the policy wording.
Car Rental — This cover, if selected, is provided if your comprehensively insured vehicle is involved in an accident or is stolen. In such event, you will be supplied with a rental vehicle while your claim is being finalised, up to a maximum period of 30 days, 45 days or 60 days depending on your selected option. 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.
AII clients with a portfolio of over R3.5 million (Building and Home Contents Cover), qualify for one of our specialised HNWI products. These products are designed for the specific needs of the HNWI. There is a broad spectrum of cover and value-added benefits that are not available on standard insurance policies.
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