Home Insurance and Financial Advisors

Company:	Location:	Contact Info:
Absa Idirect	Serving Randburg area	086 – 011 2018
Discovery Life	Serving Randburg area	086 – 000 5433
Car & Home Insurance	Serving Randburg area	011 – 262 6537
MiWay	Serving Randburg area	086 – 064 6464

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Helpful Articles on Home Insurance:

 

Household and Content Insurance

” Content Insurance covers the following:

• fire, explosion and earthquake
• acts of nature (wind, thunder, lightning, storm, hail, flood and snow)
• damage caused by bursting and overflowing of geysers or water pipes
• theft
• fire brigade charges 
• contents being transported when you move
• subsidence, heave and landslip 
• temporary accommodation 
• liability to other people (including domestic employees)
• power surges
• impact
• accidental breakage to TV, mirrors and glass forming part of any furniture

What is Household and Content Insurance?

Household contents insurance (sometimes known as home contents insurance) covers most of your personal belongings and household possessions against loss or damage. This includes furniture, domestic equipment, electrical appliances, furnishing, clothing, food and drink, some valuables and cash up to a certain limit.

Household contents insurance covers the possessions belonging to you and to close family members who live with you. This usually means that the belongings of your husband, wife, civil partner, children, parents and other close family members living with you are protected. Some insurance companies automatically include people who are cohabiting in their definition of ‘family members’, but you may want to check. A friend who lives with you or who is staying with you would not normally be covered, unless their name was included in your policy. There is no legal requirement for you to take out household contents insurance, but it is advisable for you to do so.

Your household insurance policy usually covers damage to your possessions caused by fire, flooding, and storm damage, as well as theft. Accidental damage or loss to household items are not usually covered by your insurance policy. The only exceptions are mirrors and fixed glass in furniture and televisions. You can often extend your policy to cover accidental damage to all of the contents of your home. You will have to pay extra for this.

Most household contents policies give ‘new for old’ cover. This means that you will get the full cost of replacing an old item with a new one if it is damaged or stolen. However some items, for example clothing and bedding, are not usually covered on a new for old basis.

Household contents insurance policies do not usually cover personal possessions taken out of the home, for example, cameras, jewellery or sports equipment. However, you may be able to get cover for such items by paying extra. This is known as all risks cover. There is usually an upper limit on the value of any single item.

Household contents insurance usually also provides cover for payment of a lump sum of money if you or your spouse die as a result of a fire, theft, or an accident in your home. It can also cover your legal responsibility if someone is injured or dies when they visit your property.

You may have to get extra cover if you want to include a very valuable item in your contents insurance policy.

Choosing household contents insurance

Before you take out a household insurance policy, decide how much insurance you need. This will mean working out the cost of replacing all your possessions. Ask for quotes from several insurers to help you get the best deal for your circumstances. You will need to compare:

• What each policy covers, and any exclusions (risks which are specifically excluded, for example, normal wear and tear);
• The price of the policy. This is known as the ‘premium’, and will vary according to your age, where you live, how much cover you want and the value of your possessions. The more valuable your possessions are, the more you will pay for your policy. It is advisable to increase the value of your insurance to keep pace with the value of your goods. Some policies are index-linked in line with inflation;
• Any discounts offered;
• The no claims bonus which increases for every year that no claims are made on your policy, up to a maximum amount. Most insurers will let you transfer the discount, if you want to change your insurer. You will also need to compare the amount by which your no claims bonus would be reduced if you made a claim;
• Any additional conditions, such as restrictions on your cover if you leave your home unoccupied for long periods of time.

Things to remember

• When you buy insurance, you must give your insurer, or the person who sells you the insurance, as much information as you possibly can about anything which might affect their decision to insure you, or how much to charge;
• It is your responsibility to inform your insurer of any change in your circumstances, for example, if you carry out any home improvements to your property. You should do this as soon as possible, and not wait until it is time to renew your insurance policy.

Making a claim

If you want to make a claim on your household contents insurance policy:

• Check that your policy is still current, and that you are covered for the situation;
• If a crime has been committed or you have lost property, report this to the police. Keep a note of the crime reference number you are given, so that you can pass it on to your insurer, if requested;
• Contact your insurer as soon as possible and request a claim form. Complete the claim form carefully and keep a copy;
• Keep receipts for any extra costs incurred as a result of loss or damage. You may be able to claim these back. “

Published by: Advice Guide (www.adviceguide.org.uk)