Insurance Costs

Dolby

Dolby

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What are your average insurance rates (home. contents, car)?

I've never really given insurance much thought, but it's now approaching R1.7k for a home (R1.9m), contents (R719k) and car (Retail). There are small things like All Risks but the three below make up the bulk :

* So the home is actually R1.2m - but she says to add because if it burns down, they need to remove rubble and rebuild at more more then market - sound legit?

* Contents also looks way too inflated now that I'm analyzing. I'm in a 80sqm place - where can I put anything.

* Car is a 7 year old Volvo that I'd get R180k-R200k if I sold privately, and R130k-R160k if traded.

Time to look around or will I shave off very little? The service has been great, it's just that R1.7k...
 
Home - R450 (R4.5m) - FNB
Car - R969 (2018 Renault Megane GT) - Naked
Household Contents - R207 (R350k) - Naked
 
Dolby said:
What are your average insurance rates (home. contents, car)?

I've never really given insurance much thought, but it's now approaching R1.7k for a home (R1.9m), contents (R719k) and car (Retail). There are small things like All Risks but the three below make up the bulk :

* So the home is actually R1.2m - but she says to add because if it burns down, they need to remove rubble and rebuild at more more then market - sound legit?

* Contents also looks way too inflated now that I'm analyzing. I'm in a 80sqm place - where can I put anything.

* Car is a 7 year old Volvo that I'd get R180k-R200k if I sold privately, and R130k-R160k if traded.

Time to look around or will I shave off very little? The service has been great, it's just that R1.7k...
Click to expand...
Clothing, curtains, furniture, electronic, decorations... . That stuff adds up surprisingly fast for contents.
 
Too much...

2021 BMW X3 - R2100
Household contents - R1,2m cover for R480
Phones x2, watches x2, laptops x2, my wedding ring - R970
Buildings insurance - R600 for R4m (this is with FNB)

We do get around R500 - R600 cash back each month. Insurance is with Discovery Insure.
 
Household contents (+-R350k + R80k in specified items) = R300pm (Santam)
2011 Hyundai i30 = R580pm (Santam)
2007 Audi A4 = R297pm (Naked)

Building insurance not on yet as we are still waiting for transfer.
 
R719k worth of contents in a R1.2mil house? Where did they get that amount from or what are you keeping in your house?
What Volvo is it?
 
Pak Fa Fui said:
R719k worth of contents in a R1.2mil house? Where did they get that amount from or what are you keeping in your house?
What Volvo is it?
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Well, like I said, it's crept up and I haven't been paying attention (my fault).

They had a minimum of R350k contents or so, and my entertainment system at the time was around R200k - and maybe another R200k for everything else. But it's crept up over the years and I'll bring that down

Volvo is 2014 V40 D3 R Design
 
R 719k contents in a 80sm place sounds very high, BUT everyone is different. How many occupants? Clothing can add up quickly and furniture has become helleva expensive, be careful to just adjust down willy-nilly.

Get an inventory form from your broker or I think u could probably find one on the interwebs. Complete it over a couple of days to see where u get too.

Thumbsuck for average Joe for a 2 bedroom 80sm place R 400k to R 500k. A lot of variables though, jewellery, expensive sound or camera equipment, etc, etc. Remember to obviously work on replacement value.
 
Katelknaap said:
R 719k contents in a 80sm place sounds very high, BUT everyone is different. How many occupants? Clothing can add up quickly and furniture has become helleva expensive, be careful to just adjust down willy-nilly.

Get an inventory form from your broker or I think u could probably find one on the interwebs. Complete it over a couple of days to see where u get too.

Thumbsuck for average Joe for a 2 bedroom 80sm place R 400k to R 500k. A lot of variables though, jewellery, expensive sound or camera equipment, etc, etc. Remember to obviously work on replacement value.
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Agreed.

I'm definitely dropping it to R500k or less. Though it's the escalation every year that it crept up. I'm pretty sure a few years ago it was under R500k..
 
There is a tool on Santam's website that can help u with the insurance on your building. Helps u to calculate the replacement value. I think Absa and others have similar calculators.

R 1.9m for a 80sm place is very high.
80sm @ R 10k/sm = R 800k.
Add garage/s (if any), pool, paving, carports, walls, etc.
Professional fees, demolition costs, etc = far from R 1.9m
 
Katelknaap said:
Professional fees, demolition costs, etc = far from R 1.9m
Click to expand...

Thanks. I'll get them to amend the building content/buildings

So property is 120sqm full title with garage, boundary walls, patio etc - so happy with the R10k/sqm cost.

It was the rubble removal and other costs I followed what they were saying, as I had no clue. Basically they said if it burned to the ground, they'd need to clear anything remaining, rubble removal plus other costs.

But I guess R600k extra for all that is a bit much :)
 
WalkWithMe said:
Under insuring can result in a partial payout.

Also clothing can work out expensive.

Go add everything up.
Click to expand...
Yea I'm going to redo everything today.

I'm sure they can halve that contents and shave off R400k from the building insurance
 
Household contents insurance is relatively cheap, so I'm probably over-insured by by quite a bit.
That said, remember it's replacement value. That 10 year old lounge set that you paid R5000 for? Probably R15000 to replace. Dining room tables etc are also quite expensive.

To give you an idea, we sold some furniture for a move. Mostly not very well looked after and we sold it for pretty cheap for a quick sale. We made an easy R25K.
I would wager replacement value for everything we sold could have been close to R100K.
The replacement value, and thus insured value and increased insurance premium, for a nice used camera or lens is also depressing. I think 2 - 3x what I paid for it.
 
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With content you also need to factor in claims adjustments.

When a claim is made for something like a fire or break-in the assessor will assign blanket values to misc items in the house like clothing, the amount depends on the insurer but clothing is usually blanketed at 15k per person living in the house, adult or child.

Using this value they calculate what you should be insured for, if they deem your value at 500k and you insured for 250, they will only pay out 50% less excess of whatever you claiming for.

The counter can be a problem in the event of a fire, if you someone who likes smart clothes, 15k could fall far short, so if you insured for 500 and it should actually be 750, they ain’t paying 750.

It’s a good idea to document each room with an estimated value of possessions with a general category breakdown, the last time I did that, my jackets alone was worth more than that 15k blanket allocation.

That being said, building, content and 2 cars are costing me like 2k.
 
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Dolby said:
Thanks. I'll get them to amend the building content/buildings

So property is 120sqm full title with garage, boundary walls, patio etc - so happy with the R10k/sqm cost.

It was the rubble removal and other costs I followed what they were saying, as I had no clue. Basically they said if it burned to the ground, they'd need to clear anything remaining, rubble removal plus other costs.

But I guess R600k extra for all that is a bit much :)
Click to expand...

Building insurance costs nothing though so shouldn’t be a concern at all.

Dropping that with 600k isn’t going to save you any real money.
 
CranialBlaze said:
With content you also need to factor in claims adjustments.

When a claim is made for something like a fire or break-in the assessor will assign blanket values to misc items in the house like clothing, the amount depends on the insurer but clothing is usually blanketed at 15k per person living in the house, adult or child.

Using this value they calculate what you should be insured for, if they deem your value at 500k and you insured for 250, they will only pay out 50% less excess of whatever you claiming for.

The counter can be a problem in the event of a fire, if you someone who likes smart clothes, 15k could fall far short, so if you insured for 500 and it should actually be 750, they ain’t paying 750.

It’s a good idea to document each room with an estimated value of possessions with a general category breakdown, the last time I did that, my jackets alone was worth more than that 15k blanket allocation.

That being said, building, content and 2 cars are costing me like 2k.
Click to expand...
"Using this value they calculate what you should be insured for, if they deem your value at 500k and you insured for 250, they will only pay out 50% less excess of whatever you claiming for." - - - Wrong!

This is why anyone should only take advice from an approved FSP.
 
Hemi300c said:
"Using this value they calculate what you should be insured for, if they deem your value at 500k and you insured for 250, they will only pay out 50% less excess of whatever you claiming for." - - - Wrong!

This is why anyone should only take advice from an approved FSP.
Click to expand...

I spent 3 years working in insurance software development, it’s called claim adjustment.
 
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