Spring has a way of reminding us of new beginnings, fresh perspectives, renewal, growth, and sometimes doing away with the old. More aptly named spring cleaning, this feel-good process helps us get things shipshape just before the summer holidays. So, what better time than to ensure your insurance is also spick-and-span?
At De Wet De Villiers Brokers we embrace the idea of spring cleaning your insurance by revisiting your portfolio for renewal. Think about it. Your contract with your short-term insurance company is automatically renewed every year. And, if you are not with a short-term broker that encourages you to revise your policy, it can simply roll over without inspection and careful analysis. Revising your insurance portfolio will ensure that you are not under- or over-insured.
Every year the things we own get more and more expensive to replace and being under-insured can become a very costly exercise. But spring cleaning your insurance may also help you save some money in the long run.
Courtesy Santam, we bring you the following tips to help you spring clean your insurance:
Adjust the amount you’re insured for
The main reason for reviewing your policy is to make sure that you are insured for the right amount – this is what insurers call the ‘sum insured or limit of indemnity ’. Over the course of the past year, you may have bought a brand new television set and a couple of other items, all of which means you will have needed to adjust the contents of your home insurance cover.
Avoid being under-insured
The value of the goods insured should equal what it would cost to replace them today, not the original purchase price. Very often we find that goods remain insured for their original value – for example, a leather couch bought 10 years ago would be insured for R6 000. But to replace the couch would cost R20 000 today, so you can be left very disappointed when you leave the shop with an inferior and smaller couch than the one you replaced.
The structure of your home
If you’ve enhanced the value of your home by replacing your roof or redoing your kitchen you need to increase the amount your house is insured for too. Your house (its structure) and your belongings (the contents of your home) must be insured at their replacement value – that is, what it will cost you, at the time of a claim, to replace the building (your home) or belongings with similar, new structures or items.
Your vehicle
Your vehicle should be insured at a “reasonable market value”. Reasonable market value is the retail value, which is what a dealer would sell it for, considering its age, the mileage, the condition of the car and any extras.
When insuring through De Wet De Villiers Brokers, you can rest assured that we will take the time to assess and understand your unique situation and financial position, so that we can provide you with comprehensive and accurate advice, guidance and solutions. This in return will empower you to make an informed decision that offer valuable return on investment.
Please contact our team if you would like to review your insurance portfolio.
Sources:
Santam: https://www.santam.co.za/blog/what-we-do/spring-clean-your-insurance-we-give-you-our-top-tips/
Santam: https://www.santam.co.za/blog/intermediary-advice/how-clients-can-spring-clean-insurance-cover-and-save-money/