Personal Assets

Buildings

It is essential to understand what your insurance policy defines a building as. Usually, it is the actual structure with all fixtures and fitting and other named structures like driveways, gates, fences, fixed swimming pools, outbuildings, satellite dishes etc. – check your policy to ensure your building falls within the ambit of cover provided by your policy.

Also, make sure you disclose non standard building construction. Examples of non standard building construction include thatch, wood, prefab etc. Please contact Chadwicks should you are unsure. The main events covered by residential building policies are Fire and Storm. Always check you have read the policy exclusions. An example of a risk that is excluded is “Wear and Tear” or any gradually operating cause.

The correct setting of your sum insured is crucial, to avoid Proportionate Underinsurance penalties applying at claim stage. Invariably, the sum insured must always represent the cost to rebuild, inclusive of VAT and all costs like professional fees, demolition etc. An annual professional evaluation of your building is prudent to ensure your sum insured is correct.

House Contents

Essentially, the assets that remain, should be able to turn your building upside down, are the House Contents. The main insured events covered under House Contents are Fire, Storm and Theft. Always check you have read the policy exclusions. An example of a risk that is excluded is “Wear and Tear” or any gradually operating cause.

The correct setting of your sum insured is crucial, to avoid Proportionate Underinsurance penalties applying at claim stage. Invariably, the sum insured must always represent the New Replacement cost, VAT inclusive, of all the House Contents , from your teaspoons right to the big ticket items like flat screen TV’s, Audio Equipment etc.

It is advisable to frequently revisit your sum insured for House Contents and particularly when new assets are acquired, to ensure you are not proportionately Underinsured. A proper valuation of this sum insured is prudent to ensure your sum insured is correct. Chadwicks can provide you with inventory forms, to make it easier for you to do this very important value at risk exercise.

All Risks

An all risks insurance policy, is essentially cover for all loss or damage to specified property, subject to the listed policy exceptions. Some typical exclusions are wear & tear, mechanical/electrical breakdown, inherent vice and theft from unattended vehicles. Be sure to read your policy to ensure you are aware of all the exclusions.

Away from the premises cover

Most insurance policies will restrict the place of loss to the premises only. An All Risks policy, however, is designed to cover your property on and away from the premises, in terms of the items specified in the schedule, which is a big advantage. Typical items insured under All Risks, include portable property such as cell phones, laptops, projectors, iPods etc. Insurers will generally load the premium slightly for this cover, as their risk exposure is higher.

Motor

The three types of cover offered by motor insurers, are Comprehensive, Balance of Third Party, Fire and Theft and Third Party only.

Comprehensive Motor Insurance

Comprehensive is the widest cover, basically covering accident to the car, theft and liability to third parties, arising out of the use of the car. This is most expensive premium option.

Balance of Third Party Motor Insurance

Balance of Third Party, basically covers theft and liability to third parties, arising out of the use of the car. Accidental damage to your car is not covered. The premium is slightly less expensive than Comprehensive

Third Party Only Motor Insurance

Third Party only, basically only covers liability to third parties, arising out of the use of the car. Accidental damage to your car and theft is not covered. This is the most cost effective premium option

Apart from the above cover options, clients may choose optional extras, which may include:

• Insurance cover when travelling outside of South Africa’s borders. This additional cover may include the cost of repatriation to South Africa, should the loss occur outside South Africa
• Special cover for 4×4 owners
• Car hire, up to a specified number of days, following a claim (accident or theft) to the insured vehicle. The insurers basically provide you a hired car, usually after 3 days
• Vehicle credit shortfall (“Top Up”) insurance cover, which covers the outstanding payments (beyond the specified policy indemnity) to the finance house
• Basic Excess Waiver
• A Voluntary Excess (to reduce the premium)
• Cover for factory and non-factory fitted extras e.g. canopies, tow bars, bull bars, mag wheels etc.

Pleasure Craft

Watercraft come with their own unique set of risks and yet, are similar to motor car when it comes to insurance, in that the policies will usually differentiate between the accident damage to the pleasure craft, passenger liability and liability caused to third parties out of the use of the boat – like pulling a water skier for example.Just think what can go wrong…

Things to be aware of in general:

Most policies will only cover a certain specification of craft, usually there is maximum length that will accepted, around the 5m to 8m mark. Make sure you comply with the length requirement or other specifications of your policy

Generally policies will include the inboard motor as part of the hull. Outboard motors, on the other hand, need to be specified. Other accessories like water ski’s, electronic equipment also need to be specified. It is therefore very important to determine how your insurers define what they mean by hull (the boat)

The setting of the sum insured is not straightforward – insurers usually have a different basis for setting the sum insured, depending on the age of the vessel. Proportionate Underinsurance applies if the sum insured is incorrect at claim stage

The policies will typically limit the distance you can venture out to a certain radius from the shoreline, usually 20km or so – make sure you check your policy and stay within the defined radius

You will need a valid skippers licence to when using the vessel in terms of shipping legislation and you will need to comply with all other relevant legislation, which applies, when using the vessel

Theft of outboard motors, jet ski’s, wet bikes etc. are usually not covered if left unattended – ensure you check your policy conditions in this regard