Now is the time to take stock of your short-term insurance

03bIt’s the start of a new year. You may have acquired some new stuff over the festive season such as jewellery, the latest electronic gadgets, or simply added to your wine collection.

Are your household contents adequately insured?  Have you added that new piece of jewellery or that new tablet to your All Risks? Ensuring that your policy is up to speed takes a lot of heartache out of the situation when the claim happens.

Being slightly over-insured is “cheap”, but being under-insured can be very expensive

If you are under-insured by 30% you will probably be saving only 20% on the Contents premium. You will, however, be exposing yourself to a potentially massive reduction in claim settlement that could run into tens of thousands of Rand.  The principle of average says that if your sum insured is 30% too low, your claim settlement will be reduced by 30%. That, for example, is a R30,000 reduction on a R100,000 burglary claim.

Under-insuring is a bad investment. If you’re looking for a premium reduction, there are better ways to do it than being deliberately under-insured. Speak to us.

Your policy requires that you have valuation certificates for all jewellery valued at over R10,000. Jewellery appreciates in value remarkably quickly. We strongly recommend that you have your jewellery re-valued every 3 years.

Getting your policy in order should be a New Year’s resolution that you can keep

To ensure that you are adequately covered, please contact Vanessa on 011 778 9314 or e-mail her at vanessa@fpm.co.za.

Rodney Caruana

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.