Are your household contents fully covered?
The contents of your home are valuable, both in terms of money, and sentimental value. If you plan on taking a holiday this year, make sure your home contents are fully insured and that payments are up to date.
Household contents insurance covers loss or damage to your movable furniture and fittings, to the contents of your refrigerator and freezer, as well as personal items and valuables. Even the most basic insurance will cover your household contents against damage or loss caused by fire and theft, and for a set premium each month - offering you peace of mind if you plan on going away and leaving your home empty during the holiday season.
How much cover do you need?
In order to be able to replace valuable items and possessions, it is important to insure the contents of your home for the amount it would cost you to replace them should they be stolen or damaged. It's a good idea to make up a list of all items being covered under the household insurance policy and taking the time to calculate the current value, so that you insure your contents for the correct amount. Most insurance companies offer a form that can be downloaded and completed. Go from room to room and write down what it would cost to replace all the items in each room.
To ensure that your insurance cover continues to offer the highest possible cover for your household contents it is essential to perform an annual check of replacement values, and include any new furniture or items added and that should be covered under the policy. The last thing you want when replacing lost, stolen or damaged items is to find that the prices have outstripped your buying power, forcing you to compromise on the replacement item.
For more information on household and other insurance products visit www.dialdirect.co.za. On their website you can complete an online enquiry for all your insurance requirements.
What should be covered?
You spend a lot of time and money to decorate your home and it can be financially devastating to replace these items, so it is important to be as comprehensive as possible. Discuss with your partner or spouse the type of household insurance you need, be it basic, personal effects, personal liability, and/or all risks. If in any doubt as to the type of coverage provided by a specific insurer - ask.
Liability cover is an option that can be included with your household insurance. This type of insurance policy protects an individual from the risk that they may be held legally liable for, injury or negligence that occurs on or within the property covered under the household policy. Liability insurance policies cover legal costs and any payouts to third parties (guests or visitors) for which the insured would be responsible if found legally liable.
While household insurance covers the item within a home, when items are taken out of the home they should be insured under All Risks. Additionally, not everything in a home is covered under your household insurance policy. Consider that you own expensive photography equipment and regularly take this out of the home to take photos; All Risks offers cover should the equipment be stolen or damaged. This is where it is important that you accurately specify the replacement value to ensure that adequate cover is provided should items need to be replaced.
Unspecified All Risks cover offers even more cover for smaller items, such as the contents of a handbag, or suitcase if you travel frequently.
GOOD TO KNOW
◊ Enquire as to the excess for your household cover. A cheap policy may end up costing you more in the event of a claim.
◊ Don't forget about the contents of your garage or outbuildings. You have the option to cover these under your household contents.
◊ Have personal items professionally valued for insurance purposes.
The information provided in this article is for informational purposes only and do not constitute professional advice. Dialdirect is an authorised financial services provider (FSP licence number: 15259).