Choosing the right insurance for your home and possessions is really important. How would you replace everything in your house if it was destroyed or stolen?
Home owner's vs home contents insurance
It’s easy to get confused between home contents insurance and home owner’s insurance. Home owner’s insurance, is sometimes called buildings insurance and covers the structure of your house and other immovable items such as your carpets and geyser.
Home contents insurance covers everything in your house which you will take with you should you ever decide to move. Basically, if you turn your house upside down, it should cover everything that falls out. This includes your furniture, kitchen appliances, linen, clothing, electrical equipment and jewellery.
Insure your home contents properly
Most homeowners get insurance against damage or loss as a result of wind, water, hail, snow, fire, lightning, an explosion, burglary or theft.
When you calculate how much home contents insurance you’ll need, start by listing all your belongings and work out how much it would cost to replace them new. Re-evaluate your contents at least once a year to make sure you aren’t under-insured.
You should be aware that insurance companies set limits on valuable goods that fall under household contents. They will pay out a certain percentage of the total insured amount for a single item. That’s why you must specify expensive things like your wedding rings or laptop under all-risk cover to ensure you will be compensated for your loss.
Did you know?
- Statistically one in three home contents are underinsured by as much as 30%
- More geysers burst on a Monday than any other day of the week
- By combining your home contents, building and car insurance under a single policy you could qualify for a reduced premium.
Why is one in every three home contents underinsured?
Underinsurance happens when your insured value is less than the replacement value of the contents of your home. For example, a home owner could install an expensive sound system but neglect to adjust their sum insured. In the event of a claim, your insurance will pay out on a pro-rata basis and you will receive less money than what it costs to replace your goods.
Sometimes homes are also underinsured because policyholders forget to adjust their policies as they acquire new fixtures to the building or make alterations to their home. If these improvements are not taken into consideration to determine the sum insured, the home owner will not be fully indemnified.
Get help when you need it
When you have some trouble with your car, you’ll want to know you have the right cover. A burst geyser is no different. If you are a Santam policyholder, our SOS services offers you help in your home and on the road. For more information about our SOS services, click here.
Save on your insurance costs
Most insurance companies will offer reduced insurance premiums if you combine your household contents and vehicle insurance with them. Many insurance companies, like Santam provides an option to increase your excess payment which will result in a lower monthly insurance premium.
Look after your house contents
Make sure you understand and adhere to your insurance policy requirements. An alarm system, security gates and burglar bars are common policy requirements for home contents insurance. It’s your responsibility to ensure that the security devices are functional and are in good working order. Take the time to read through your policy documents. If you need advice on your home insurance contents, speak to your broker or contact us on 0860 444 444.
For 100 years, Santam has been in the business of protecting South Africa’s most important assets and valuables. We look beyond the facts in front of us to think about the lives that lie behind them. That’s why when things go wrong, our clients know they’re with the insurer that makes it right. This is the Santam way. Good and proper then. Good and proper now. Good and proper always.