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Know Your Policy – Part 9; Underinsurance – Don’t let it happen to you

            What is House Contents cover? House Contents insurance is a section on your personal policy, which may include your vehicles, buildings and specified all risks items. House Contents insurance covers your personal belongings inside your home for fire, theft and various other risks. What is the danger of being underinsured for House Contents? There are two very important points to understand; 1. You must include ALL of your belongings in your sum insured 2. You must insure your belongings at NEW REPLACEMENT value In other words, you cannot leave out your lounge suite from your house contents sum insured just because it is old, or you don’t want to insure it. If you do, you will be underinsured and

Know Your Policy – Part 10; Understanding your brokers role better

            What does my broker actually do for me? In the case of Kayser Baird, almost everything! You get many different types of brokers, from small one or two person brokers that deal with the insurance call center on your behalf, to large global brokers that also have their own insurance licenses, the key is to choose a broker that suits your particular needs and wants. Santam for example is an intermediated insurance company which means that they do very little direct insurance, almost all of their clients are with brokers. If you are a Kayser Baird client, your broker does 98% of the administration pertaining to your policy. Kayser Baird manages your insurance policy on its own systems, either directly interfacing with

Know Your Policy – Part 8; Your Motor Excess

            What does your motor vehicle excess really mean? There are a number of common misconceptions about motor excesses and the way they are treated under different types of motor claims. The most common of these is that consumers often believe they won’t have to pay an excess if somebody else causes an accident. Both drivers would be responsible for the excess under their own policy, however if one insurance company recovers money from the other insurer then their client would be refunded their excess. In some instances the driver at fault may not have insurance, or he may deny being at fault when approached by his insurer. In both instances there may be no recovery, and therefore

Know Your Policy – Part 7; Optional extensions on your personal policy

            Optional Extensions on your personal policy Because everybody has different circumstances, there is no “one size fits all” personal policy and you need to discuss your policy with your broker to make sure that you are covered where we you need cover, and that you are not paying for insurance that you don’t need or want. Some of the most common optional or paid extensions that you can take on your personal policy include the following; Car Hire Clothing and Personal Effects / Portable Possessions cover Mechanical / Electrical Breakdown for your house contents Accidental Damage for your buildings Car Hire In the event of you having an accident or some other insured event that puts your car

Know Your Policy – Part 6; Load shedding and your insurance policy

          From an insurance perspective, many questions have arisen about how load shedding affects personal and business insurance policies. In Part 6 of our “Know Your Policy” articles we answer some of the most important questions and welcome further comment or questions that you may have. Security Your personal insurance policy may require you to have a linked alarm system fitted at your home. If this is the case, it is your responsibility to ensure that the alarm system is in good working order, and that the monitoring company is receiving a signal when there is an activation. Your security system relies on electricity for power and in the absence of electrical supply, electric fences become ineffective and alarm

Know Your Policy – Part 5; Convenience Benefits

          Kayser Baird underwrites your personal insurance policy with either Santam or Hollard, the two largest insurers in South Africa. Both the Santam and the Hollard personal policy contains a range of very useful convenience benefits. In the case of Santam clients, these benefits are built into the premium and are automatically included in the cover, for Hollard client’s you are able to opt in or out of this service which costs R20 per month. What is covered? The three most frequently used benefits offered are; Home Safe Chauffeur Road and Accident Assist Home Assist Other useful benefits are; Emergency Medical Assist (access only – costs for your account) Legal Assist How Do I access these benefits? If you

Know Your Policy – Part 4; Your Policy Excess Structure

Having an excess or first amount payable is by no means compulsory, you can elect to waive the excess but in return the insurance company will charge you a higher premium. When you reach the age of 55 Kayser Baird will waive your excess for free but up until this age it is an important component of your insurance which helps to keep your monthly insurance premiums down. The vast majority of insurance products in South Africa include an excess on the Vehicle, Buildings and All Risks sections of the policy. The lower the excess, the higher the premium and vice versa. Some insurance policies carry a “hurdle amount” which means that you don’t pay an excess for small claims, but when your claim

Know Your Policy – Part 3; Residential Buildings Insurance

Historically in South Africa it was a bank requirement that you had to insure your building with the bank that held your bond. This is no longer compulsory and you may insure your residential building with any of the leading insurers. Despite this, many homeowners still have their building insured with their bank, often paying high rates while being underinsured at the same time. If your buildings insurance for your house has been with the bank for a long time, it is possible that your sum insured for your house is still based on your original purchase price, and may be significantly lower than the correct insurance value which would be the cost to re-build your house and the other fixed improvements. Different banks

Know Your Policy – Part 2; All Risks Cover

Most people understand that House Contents insurance covers you for fire, storm and theft of your belongings whilst inside your residential property. When people leave their houses and take belongings with them however, things become a bit vague. This post is to tell you more about how to correctly insure your belongings when you are away from your home. Your personal insurance policy has a section called “All Risks”, “Out and About” or a variety of other names. This section enables you to individually specify items such as camera’s, laptops, jewellery, sporting equipment etc and also to take blanket cover for clothing and personal effects when you are away from your house. The cover is generally referred to as “All Risks” because it covers you for any type of loss,

Know Your Policy – Part 1; The Average Clause

It is a harsh reality that policy holders don’t always get paid out in full for their claims. There are many reasons for this but the most common reason is underinsurance. If you have insured your house contents for R200,000 and you actual replacement value is R400,000 you will only be paid out 50% of any house contents claim, irrespective of how much you are claiming. This is known as the “Average Clause” and although it may seem unfair at first, it is a vital part of any insurance contract. The average clause does not only apply to personal insurance policies, but to a number of other types of insurance contracts as well. How does it work? You and your neighbour may live in identical houses,