-
Join the MyBroadband community
South Africa’s biggest forum. Discuss, discover, and connect with thousands of members.
-
Question of the Day: Do you bet on sports?
How much insurance do I need?
- Thread starter Tosser
- Start date
My sincere recommendation is to complete an inventory at least once every 2 years if you want to make sure your sum insured is correct. I would draw up a list of all the rooms in your house including garage, servants quarters, pool house, etc and then list all major items in the room. Roughly determine what it will cost you to replace it in terms of today's prices if you had to go out and buy it yourself.
Don't forget that inflation increases the value of things. So if you bought a jacket 3 years ago for R500, it will probably cost you more to buy it today. Things like paintings, jewellery, antiques, books, etc will be difficult to value and you might need specific assist from professionals.
You also need to determine what the policy wording says in terms of the basis of settlement. In the personal insurance 'space', most work on a 'new for old' or 'current replacement cost'. For example, even though your LG fridge is 5 years old, if it is stolen, the company should settle the claim based on what it would cost you to buy a new fridge, which is identical or similar to the fridge lost.
If you want to do it right, never be too conservative with your sum insured. If your home is gutted by fire, the last thing you want is to be underinsured. All insurers will apply average and you will responsible for the rateable portion of the difference in shortfall.
I keep my inventory on in Excel and just update values and add/delete major items, as we buy or get rid of things. First time round is a schlep, but it's a fantastic safety net and easy to update in the future.
Don't forget that inflation increases the value of things. So if you bought a jacket 3 years ago for R500, it will probably cost you more to buy it today. Things like paintings, jewellery, antiques, books, etc will be difficult to value and you might need specific assist from professionals.
You also need to determine what the policy wording says in terms of the basis of settlement. In the personal insurance 'space', most work on a 'new for old' or 'current replacement cost'. For example, even though your LG fridge is 5 years old, if it is stolen, the company should settle the claim based on what it would cost you to buy a new fridge, which is identical or similar to the fridge lost.
If you want to do it right, never be too conservative with your sum insured. If your home is gutted by fire, the last thing you want is to be underinsured. All insurers will apply average and you will responsible for the rateable portion of the difference in shortfall.
I keep my inventory on in Excel and just update values and add/delete major items, as we buy or get rid of things. First time round is a schlep, but it's a fantastic safety net and easy to update in the future.
I agree. But the peace of mind is hugely important if you're serious about getting it right.
If you have any other questions, post them here or PM me. I will be happy provide answers
Dolby
Honorary Master
- Joined
- Jan 31, 2005
- Messages
- 39,163
- Reaction score
- 6,146
There is an inventory listing on:
http://www.brokerserv.co.za/perslines.htm
or for an excel version try
http://depositfiles.com/en/files/254spkq3r
http://www.brokerserv.co.za/perslines.htm
or for an excel version try
http://depositfiles.com/en/files/254spkq3r
You need to check your policy wording in your household contents section and look for the section which talks about the basis of settlement. It's the section which will tell you how the ins co settle the claim. Different companies will have different slants on their basis. You're welcome to PM the name of the company and I can try find a copy of the wording and see how they'll settle it.
My understanding is that most personal insurance policy wording is on a 'new for old' basis or 'new replacement value' basis.
Essentially the ins co will settle and pay you out the sum it will cost you to replace the goods. If the exact goods cannot be found, which is often the case, they will settle based on the value of the item most similar (bad English
) to yours damaged or lost. Most insurers also exercise the option to repair the goods, if it can be repaired. However, they'd be stupid to try fix something that is unlikely to be successfully fixed, especially as they become responsible for the repairs. Also, once they have exercised the option to repair your goods, they are responsible to make good that promise no matter what the cost. It is for this reason that insurance companies are extremely cautious when it comes to fixing things.
In your case, unless the policy wording carries something to the contrary, it is probable that you would be paid out on the new replacement value of your audio equipment. Your idea to go about proof of ownership is great. It will certainly minimise any fuss about exactly what has being insured. For ultimate peace of mind, I would recommend a friendly chat to your broker. They're obliged to give you the advise you're looking for.
Last edited:
Serial numbers AND photos? Bit of overkill....not?
Why both, don't you just need proof of ownership?
Jislaaik, I started on my inventory listing last night, but looking at this template makes me realise how much I missed, like the blinds for example. I was so focussed on listing the 'important' assets like TV's, that I completely overlooked some stuff.
It also struck how much stuff I got, and how much it would cost to replace everything. At this early stage it looks like I am quite possibly under insured.
Thanks for the lists.
Eye opener. Have to re-evaluate mine & go thru this inventory list.
Must also check insurance docs.
Which insurance you guys recommend for household?
I also have my laptop, projector and some other stuff listed as moveable/ out of home items or something like that.
Must also check insurance docs.
Which insurance you guys recommend for household?
I also have my laptop, projector and some other stuff listed as moveable/ out of home items or something like that.
Serial numbers are only usually necessary with things like computers.
Why not call a broker and let them take the hassle out of the deal? I recently went to Glenrand and they were fantastic.
Interestingly, I am with Santam and haven't been asked for anything.
But considering the comments about this, I suppose I am going to have to take the pain and list each individual item that carries a high value.
Dolby
Honorary Master
- Joined
- Jan 31, 2005
- Messages
- 39,163
- Reaction score
- 6,146
You need to check your policy wording in your household contents section and look for the section which talks about the basis of settlement. It's the section which will tell you how the ins co settle the claim. Different companies will have different slants on their basis. You're welcome to PM the name of the company and I can try find a copy of the wording and see how they'll settle it.
My understanding is that most personal insurance policy wording is on a 'new for old' basis or 'new replacement value' basis.
Essentially the ins co will settle and pay you out the sum it will cost you to replace the goods. If the exact goods cannot be found, which is often the case, they will settle based on the value of the item most similar (bad English
Also, once they have exercised the option to repair your goods, they are responsible to make good that promise no matter what the cost. It is for this reason that insurance companies are extremely cautious when it comes to fixing things.
In your case, unless the policy wording carries something to the contrary, it is probable that you would be paid out on the new replacement value of your audio equipment. Your idea to go about proof of ownership is great. It will certainly minimise any fuss about exactly what has being insured. For ultimate peace of mind, I would recommend a friendly chat to your broker. They're obliged to give you the advise you're looking for.
Thanks!
I'll check my policy!
ShakeSpeer
Senior Member
Not always the best way of going about it. What if your pc / laptop gets stolen or crash? Keep in mind that in the event of total loss, your excel with all its backups might be gone. My insurance brokers said I must use an online system called OLIF. They keep all records secure and access to it via web interface at no cost to me. All the data is encrypted & notifications every 3 months to update.
This looks very interesting - signing up with them now. Thanks