As you know, your sums insured in terms of House Contents and All Risks sections must be based on the full New Replacement Value (VAT inclusive).
The drastic weakening of the Rand has impacted the price of personal effects such as cell phones, laptops, tablets as well as household contents etc. The net result is a dramatic increase in the new replacement values of most of these assets.
For example, a certain tablet, bought in September 2015, costing R7 200, currently costs R8 600 to replace.
The direct consequence of incorrect policy sums insured is that you will not receive a full indemnity at claim stage and you run the risk of proportionate Underinsurance penalties applying.
It is therefore critical that you immediately review your policy sums insured – do not wait for your next renewal.
Please contact us should you wish to revise your policy sums insured or if you require further advice.
Until next time.
admin February 15, 2016
Posted In: Newsletters