Car and Home Insurance. The purchase that we all dislike, but in the same breath it is something that we all need.
Just think about the financial nightmare if your home was destroyed in a fire, your possessions stolen or your car smashed in an accident. Short-term insurance provides the peace of mind of not having to dip too deeply into your own pocket when you suffer damage or loss of your property
The biggest asset that you will acquire in your lifetime is the property that you call home and the things that you put in it that makes your home unique to yourself. Second big purchase you will make is a vehicle because in South Africa you are pretty much stranded if you do not have a car.
These two things, your vehicle and property, are the things that lay the groundwork and the foundation for your future. Have you ever thought what would happen if one of them or both get ripped away from you in an instant?
The thing with perils or negative events that influence your well-being is that they come without warning. Nobody warns you that the biggest storm in a decade is going to damage your roof or that you will be involved in an accident and your car will be written off.
So, what do you do? Lock yourself in your room every day and hope nothing happens? No you do not because you cannot, you must get up every morning and go to work and leave your house and drive to work.
So the question is, who protects your most valuable assets in your greatest time of need?
This is where Insurance steps in and saves the day by paying your claim and putting you in the same position that you were before your peril. Great!!
Reality is that it is not always that simple. It is very important that you are correctly insured from the day that you accept the cover to the day that you claim. Here are a few things to check on your policy to make sure you are correctly insured.
- Make sure your House contents are insured at Replacement value and not Current value.
Most Insurance companies do not communicate the difference between Replacement value and Current value of your House contents. You must be insured at the Replacement value to ensure that you are not under insured at claim stage.
- Make sure your property’s value is consistent to the value that your bank wants it to be.
This will ensure that the property damages can be replaced and if necessary, all bond debt settled in case of a total loss. You must ensure that you are not under insured at claim stage as this can have a major effect on payment of all property related claims from the insurer.
- Make sure that your vehicle’s value gets updated at least once a year, because the value of a vehicle drops every day.
This is very important to ensure that you pay the correct premium and that your claim gets paid according to the correct value. Retail value is the highest value for a vehicle and should always be insured at Retail value.
- Make sure you know what excess you are liable for on each section of your insurance policy and that all the hidden excess are explained to you at inception of the policy.
Always tell the insurer that you prefer a flat excess rather than a percentage of claim-based excess.
Taking out and claiming on a short term insurance policy is daunting and time consuming, that is why it is important to have an experienced advisor that understands you as an individual and how the insurers operate. You need to have an expert to bridge the gap between you and the insurer.
Short-term insurance is something that we all need to protect the things that we have worked very hard for, that we hold most dear and caters to our changing needs.
The great thing is that you do not have to do this alone, you do not have to deal with a call centre or an Insurance company that gives you the runaround.
If you need assistance with your car and home insurance, please feel free to contact me.