Insurance and building evaluation - help

Ecco

Ecco

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Hi friends,

I had an issue with an insurance claim with contents, they say that I was under insured so didnt pay full. Wasnt anything major so not a big deal. I updated my contents valuation post that and should be in order.

However as result they now want me to get an evaluation of the building - they sent me details of a company to come do this and they charging about R2500 to do this.

This doesnt sit will with me. I am comfortable with the value as per the policy, but the insurance company are not happy with that value.

Am I wrong to have issue in paying this much for the valuation?

Are there cheaper alternatives?

Any feedback welcome.
 
Ecco said:
Hi friends,

I had an issue with an insurance claim with contents, they say that I was under insured so didnt pay full. Wasnt anything major so not a big deal. I updated my contents valuation post that and should be in order.

However as result they now want me to get an evaluation of the building - they sent me details of a company to come do this and they charging about R2500 to do this.

This doesnt sit will with me. I am comfortable with the value as per the policy, but the insurance company are not happy with that value.

Am I wrong to have issue in paying this much for the valuation?

Are there cheaper alternatives?

Any feedback welcome.
Click to expand...
How close to the value are you?

We bought house for X our insured value is 2X
 
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Ecco said:
Hi friends,

I had an issue with an insurance claim with contents, they say that I was under insured so didnt pay full. Wasnt anything major so not a big deal. I updated my contents valuation post that and should be in order.

However as result they now want me to get an evaluation of the building - they sent me details of a company to come do this and they charging about R2500 to do this.

This doesnt sit will with me. I am comfortable with the value as per the policy, but the insurance company are not happy with that value.

Am I wrong to have issue in paying this much for the valuation?

Are there cheaper alternatives?

Any feedback welcome.
Click to expand...

I've never heard of an insurer charing a client for an evaluation. Just change insurers?
 
Yes, you foot the bill for valuations nowadays. Been like this for years already. Nothing new.

The onus to ensure you are correctly insured rests on you and you alone.

Demolition and site clearance needs be included in amount insured.
 
azbob said:
Did you or the insurer select the insured value?
Click to expand...

Snyper564 said:
Insurer. When we bought the house thats the value it defaulted too.

I see its at 3.7m when we bought at around 1.75m
Click to expand...

When i bought the house, the insured value was equal to the purchase price.

This was many years ago. So the value they have now on the policy has increased and its aligned to what i think the value of the house is. But this is a value that has been updated by them.
 
Ecco said:
When i bought the house, the insured value was equal to the purchase price.

This was many years ago. So the value they have now on the policy has increased and its aligned to what i think the value of the house is. But this is a value that has been updated by them.
Click to expand...
I can understand that they want to make sure its correct but not why they wanna pass that fee onto you.
 
Rayne said:
Yes, you foot the bill for valuations nowadays. Been like this for years already. Nothing new.

The onus to ensure you are correctly insured rests on you and you alone.

Demolition and site clearance needs be included in amount insured.
Click to expand...

They gave me details of only one company to do the valuation and i think that price is out of line, but i don't know if it is or not. Looking to my fellow forum members to share if this quote is out of line or the norm?

I also suggested why not take an estate agents valuation? Thats what they used in the beginning. I have estate agents calling me every month for a free valuation? They said this will not be accepted as it might not cover cost to rebuild the house.
 
Snyper564 said:
I can understand that they want to make sure its correct but not why they wanna pass that fee onto you.
Click to expand...

I dont understand why they care if am under insured. If i agree with them my house is worth R1million, and it burns down, i expect them to pay me R1million - regardless if it costs me R10 million to rebuild.

Which is why i am also relucant to pay R2500 for somebody else to tell me what the house is worth.
 
Ecco said:
I dont understand why they care if am under insured. If i agree with them my house is worth R1million, and it burns down, i expect them to pay me R1million - regardless if it costs me R10 million to rebuild.

Which is why i am also relucant to pay R2500 for somebody else to tell me what the house is worth.
Click to expand...
Under insured is a massive problem

aon.co.za

Guard against under-insurance

Underinsurance can have serious consequences for your finances and assets. Learn how to avoid it and protect yourself from unforeseen losses with Aon South Africa.
aon.co.za aon.co.za

satib.co.za

Under Insured - Your Playing with Fire

Under insurance is where your sum insured (maximum amount that can be claimed in the event of a loss) is less than the replacement/ reinstatement cost of the property or of specified items.
satib.co.za satib.co.za
 
If you claiming content, why are they assessing the building? This is 2 seperare insurance.

Get another quote. Overinsure to be safe and move.
 
Last edited:
Tman* said:
If you claiming content, why are they assessing the building? This is 2 seperare insurance.

Het another quote. Overinsure to be safe and move.
Click to expand...
Claimed content on a different claim - building evaluation is for going forward.
 
Anybody did an evaluation recently? What was your quote to do this?
 
Ecco said:
They gave me details of only one company to do the valuation and i think that price is out of line, but i don't know if it is or not. Looking to my fellow forum members to share if this quote is out of line or the norm?

I also suggested why not take an estate agents valuation? Thats what they used in the beginning. I have estate agents calling me every month for a free valuation? They said this will not be accepted as it might not cover cost to rebuild the house.
Click to expand...
Best look around. I also don't know what's good or bad prices for property valuations. We had a 50/50 late last year for a farm and the client had to pay in R5300.

As for estate agents, that is correct. Same with municipal.
 
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Swapping my bond to FNB, they sent out an evaluator for nothing.

SA homeloans insurance was about double the purchase price, FNB is about 1 mil less.

But yes R2500 for an evaluator to come past sounds like robbery.
 
Ecco said:
I dont understand why they care if am under insured. If i agree with them my house is worth R1million, and it burns down, i expect them to pay me R1million - regardless if it costs me R10 million to rebuild.

Which is why i am also relucant to pay R2500 for somebody else to tell me what the house is worth.
Click to expand...
It's not a bad price, 5 years ago we paid that for a whole complex.
 
Ecco said:
When i bought the house, the insured value was equal to the purchase price.

This was many years ago. So the value they have now on the policy has increased and its aligned to what i think the value of the house is. But this is a value that has been updated by them.
Click to expand...
That's the problem. It is never equal. Need to take into account demolition, removal of rubble and site preparation before they even break ground for a foundation for your new home.
 
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These guys are very reasonable, consistently best quotes on evaluations:
1674655763428.png
 
In a lot (over here most) of cases, insured value is much less than purchase value since it depends on the land/area.

i.e the same house in Bishopscourt or Retreat would cost roughly the same to build but won’t cost nearly the same to buy.
 
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