But they also have questions as to what it covers, how to value their household items, and how often they should re-evaluate their policy.
Under South African law consumers cannot legally make a profit from insurance, says Ricardo Coetzee of Virseker insurance.
Because you can only be paid out for the true value of the loss, you will have been over-insured and paid out more money over time for no gain whatsoever.
The general rule is that household insurance pays for things that are not “fixed”. “Fixed” means things that are inherently part of the house like faucets, carpets, or the shower. It also does not cover any structural problems with the house.
While insurance does cover damage, it does not cover damage that is maintenance-related. If an appliance simply goes out due to failure, bad maintenance or being old, insurance will not cover it.
If a microwave is knocked off the counter by a cat, that would be covered; however, a ten-year-old microwave that simply stops running one day would not be.
“All Risks” is simply another term for Portable Possessions Insurance. It offers wider coverage for things that people generally carry around with them like jewelry and cell phones.