09 Jun Are you aware of what your household insurance will cover?
When it comes to household insurance, many clients are unaware of what the cover entails.
In a nut shell, the easiest way I can explain is as follows:
“If you had to turn your house upside down, whatever falls out – that is household contents”.
Many people find my explanation to be strange, but they never forget it. Being an insurance broker for over 15 years, you quickly learn that clients don’t want the insurance terminology/jargon. They want a simple explanation.
Simply put: What does my household insurance cover?
From the day you buy and collect items for your home, they become your prized possession. They could be family air looms, inheritances or even a buy one, get one free. No matter the cost they are important to you. The question is: Am I sufficiently insured and what are the parameters of my cover.
The definition of Household contents in simple terms is:
Loss or damage to your belongings that is caused by: fire, water, leaks, flooding, impact and theft. (These include your household goods, personal property and equipment).
How much am I covered for per item?
Depending on the policy wording, insurers will pay up to the sum insured per item on a replacement cost basis. This does not include general wear and tear, deterioration, rust, rising damp and decay. Always remember: The insurance company has the right to repair, replace or pay out cash. As long as you are placed in the same position before the time of the loss.
Are there extensions to the basic household contents?
Accidental damage is not always included under household contents. Accidental damage covers accidental loss or damage whether inside your home or at your address. Basically – drop and break cover.
My question is: Do you have household insurance and are you aware of what your cover includes? Are you regularly updated with addendums so that you are always fully aware of the change in the market?
Food for thought.
Tracey Lee Delport
Senior advisor for Short Term insurance company PCFA
T: 0860 777 232 F: 0861 779 999 | C: 072 391 9047 | E: firstname.lastname@example.org | W: www.pcfa.co.za