No matter how much you have, it’s always a lot when you lose it

Easy guide to pension and provident funds
October 10, 2017
Trust as a planning tool
October 10, 2017

Life is exciting at the moment! I just completed my studies, started a new job, bought a new car and I am moving out of mom and dad’s place into my very own place.

Aunt Mags has been fantastic and given me her couch and rugs, gran has moved into a retirement home and given me her dining room furniture, fridge, plates, pots, glasses, knives and forks. I’m taking the bed and furniture from my old room in my parents’ house and best of all, Dad gave me his 32inch HD Smart TV because he’s upgrading to a bigger one – awesome! I furnished my new cottage and didn’t have to spend a cent. I’m renting a garden cottage from a lovely couple who live close to work. Couldn’t be better!

Last night after work, I bumped into them and they told me that they had been burgled the night before! I didn’t hear anything! I’m a sound sleeper so that’s no surprise, but heck, now I’m worried. What if that had been me? I don’t have much, I didn’t spend a cent on my furniture, but it’s mine.

Insuring your home and contents is based on new replacement costs. Your second-hand TV will be replaced with a new one similar to the one you have now.

The easiest way to value your contents is to take a photo of each room, make a list of each item you see and consider its new replacement cost. If you were to buy that item today, how much would it cost you? It is always good to take photos of your contents as you may still be required to prove you owned certain items at the claim stage.

I always suggest to my clients that they send us their receipts and invoices for new items that they acquire. We can attach these to their files for future reference. We can do the same with photographs. Keeping old packaging is also a good idea.

Insurance companies also provide their clients with inventory tools. These help in estimating the amount of insurance you should have to cover your possessions.

Even better than this is an actual asset survey. This is when a professional surveyor, who is knowledgeable in the field of both retail and insurance, comes through to your home and prepares a detailed priced inventory of your contents. This will provide you with an accurate amount you should insure for as well as act as proof of ownership. This service is provided free of charge by some insurers while others will charge a fee for the service.

Insurance is always a grudge purchase, until it’s time to claim. It is difficult to pay over hard-earned money for something that you can’t feel, see or touch. However, insurance buys peace of mind, knowing that if a catastrophe does happen, you will be okay – but only if you are insured correctly and adequately.

When I mention insurance to my friends, they mostly think of the effects of crime. They won’t steal my bed so why must I insure it? Speak to the victims of the Knysna fires and they will tell you that you can lose everything. Spare a thought for those who had no insurance.

Talk to us if you are in any doubt about the adequacy of your insurance cover.

This article is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice. Errors and omissions excepted. (E&OE)

Kerri-Ann Lehmann-Poultney
Personal Underwriter
FPM Short Term Insurance Brokers
kerri@fpm.co.za
011 778 9300

SRA
SRA