Property Insurance and “Value at Risk” (VAR) ARE NOT glamorous or Eye Catching subjects, BUT ARE re essential for protecting your most Valuable Domestic Asset, YOUR HOME
IS YOUR HOME ADEQUATELY INSURED?
RESEARCH SHOWS PROBABLY NOT
A HEADLINE QUOTE from a niche Insurer within The Hollard Group states;
“Statistics show that the majority of Properties are under insured by more than 30%, a huge cause being a misunderstanding of what a property needs to be insured for – not Market Value BUT Replacement in the event of a Total Loss.”
Analysis of our recent VAR Calculations, prepared in support of new or upgrades to Insured Value, shows less than 10% were adequately Insured.
A recent 5 year Statistical report by Standard Bank Insurance highlights that the following are increasing the incidence of claims;
• Extreme weather events
• Aging infrastructure
• Behavioural shifts
A report by Miway Insurance reveals poor home maintenance is a leading cause of Claim Repudiations
Further recent NFO (Ombudsman) statistics show an 18% increase in 2024 of claims repudiated resulting from inadequate maintenance
ALL ARE HORRIFIC STATISTICS.
Whilst a Total Loss is a very rare Event, it is the level required by all Insurers unless qualified by a special written agreement.
Under Insurance DOES NOT PAY, it results in reduced settlements on all but minor claims.
It is a Disaster Waiting to Happen.
Ensure your Home’s Insured Value is correct.
SOME ANECDOTAL QUOTES ATTRIBUTED TO OWNERS’ WITH DISPUTED CLAIMS
• “I insured my house as “Standard” Category but The Assessor said I was under insured as the house should have been insured as “Middle-Class” Category, what is the difference?,
Why did nobody tell me when I took out the Policy?
I had to accept the reduced settlement as I could not wait for the Ombudsman”
• “I was under insured because I didn’t insure my boundary walls, paving and borehole. My claim for storm damage was reduced by 20%.”
• “I forgot to increase my insurance after doing extensions, 3 months later a fire damaged my kitchen and garage. It cost R 310 000 to repair but my Insurer said I was under insured by 42% and only Paid out R180 000 less the excess, my stupid fault.”
• “I wish I could turn the clock back”