Most policyholders under-insure their contents insurance/portable possessions insurance because they think its a waste of money.
And you know what? They’re right about wasting their money, but for all the wrong reasons.
It’s almost December and that means holiday time, right?. Three weeks fly by, and before you know it, you’re back home. But while you were away you had a few surprise guests who left without saying thank you. And oh, did I mention they took the TV as well?
You ring up the insurance company and lodge a claim for R150, 000 under your contents insurance section.
The assessor comes out and decides to do an inventory of everything that’s left for your contents insurance claim. Yes, he ends up counting the twenty pairs of shoes in the wife’s cupboard, and the five suits in yours. Then, after all the kindness you showed him by offering tea and biscuits, he submits a report saying you’re under-insured. Something along the lines of: “you should have been insured for R500, 000 – not R200, 000”.
“So what?”… I hear you splutter, “I’m only claiming R150, 000 from contents insurance. What’s the big deal? I mean I could understand if I was claiming for R300, 000, but I’m insured for R200, 000.”
So here’s how their discussion goes:
It’s called ‘average’ and YES, the insurer has every right to apply it (It’s right there in the fine print of your insurance contract).
So let’s recalculate the claim for R150, 000, shall we?
Not nice…especially when you find out that insuring for R500, 000 would only have cost an additional R50 a month.
None of the above has happened to you…yet!
Let’s imagine you’re insured for R200, 000. We’ve also discovered that if you ever submitted a claim for R200, 000 – and were 60% under-insured – the insurer would only pay R80, 000, right?
So let’s apply that same principle to your monthly premium of R200.
Can you see who’s the one wasting money?
Here’s the solution:
Its about time you get the contents insurance/portable possessions insurance solution thats right for you. Call us at U covered, we have the idea solution for your household insurance needs.