Insurance value

[Craai]

Also claimed (twice) with Discovery with no questions asked. I even asked them what I must do with the old shifters and helmet that were replaced - they said they didn’t need to see them. The valuation from the bike shop was sufficient.

Also had no issues when claiming from Disco. 4 bikes stolen out of garage, could only provide an invoice for two of the bikes when purchased. For the other bike I provided a photo of me on it while doing Ironman which they accepted as proof of ownership. The last one I couldn't provide anything (a cheapy that wasn’t even mine, mom’s bike which she never used and stored in my garage) Still got paid out about R4k which was pretty close to what it was worth

[Trance Dance]

Drop me pm if you'd like some assistance.

[Tromp]

Sorry my query is not entirely cycle related. Just received a notice from Auto & General that my premiums will increase 26% !!!.No previous claims . Value of " Builings " is quoted as ( say ) R 4mil., yet " Properties " ( ie. incuding the stand) in my area are selling for ( say ) R 2mil . Now , do I go back to A&G and instruct them to ( for example ) insury the " Building " for ( say ) R1.75mil ,as I do not need to insure the stand ? . I am not trying to sound clever but ,with a fixed income , I need to cut unnecessary cost wherever I can.

[ChrisF]

Sorry my query is not entirely cycle related. Just received a notice from Auto & General that my premiums will increase 26% !!!.No previous claims . Value of " Builings " is quoted as ( say ) R 4mil., yet " Properties " ( ie. incuding the stand) in my area are selling for ( say ) R 2mil . Now , do I go back to A&G and instruct them to ( for example ) insury the " Building " for ( say ) R1.75mil ,as I do not need to insure the stand ? . I am not trying to sound clever but ,with a fixed income , I need to cut unnecessary cost wherever I can.

 

Just gone through the property insurance thing with SANTAM.

 

They get an outside company to value the property, then send you a multi page document which you should check and indicate if you agree on the valuation.  They provide areas and rates for each item ... certainly not fool proof, but easy enough to check and comment on.

 

Even with the adjustment in value the premium did not increase more than inflation.

 

What I can also confirm - I did not want to insure the pool .... for the property insurance they insist everything gets insured !  Yes, you could adjust some figure downward, but the difference in premium for the correct cover vs under-insured is not worth it ....

 

 

 

 

On a side note - I do know that SANTAM has paid the CSIR to do an investigation and report on the Knysna fires. https://www.polity.org.za/article/the-knysna-fires-of-2017-learning-from-this-disaster-2019-06-07

The report is a public document (link above), and makes for interesting reading ....  Some areas are considered high risk, either for fire or crime or .... and these factors DO impact on the insurance premiums and/or requirements for certain areas ....  Property insurance is an interesting and complex field, and due for a drastic overhaul as the effect of the fires ripple through the greater industry ....

[Yo-Yo]

I pay R600 odd for a R110k value. I’ve tried to shop about but everything always seems to be a dead end or having to be tied to a car or a house or wada-wada. I’d like to pay less but need to know that covered for theft, crash etc.

[WR 1.0]

Sorry my query is not entirely cycle related. Just received a notice from Auto & General that my premiums will increase 26% !!!.No previous claims . Value of " Builings " is quoted as ( say ) R 4mil., yet " Properties " ( ie. incuding the stand) in my area are selling for ( say ) R 2mil . Now , do I go back to A&G and instruct them to ( for example ) insury the " Building " for ( say ) R1.75mil ,as I do not need to insure the stand ? . I am not trying to sound clever but ,with a fixed income , I need to cut unnecessary cost wherever I can.

Common mistake clients make comparing sales prices vs replacement /rebuild costs. Insurance companies also include around 15 % for professional fees on top of the rebuild cost (building inspector, cost of compliance certificates, etc). Ps. Your stand is not covered only the building and other permanent fixtures on the property

[daniemare]

Common mistake clients make comparing sales prices vs replacement /rebuild costs. Insurance companies also include around 15 % for professional fees on top of the rebuild cost (building inspector, cost of compliance certificates, etc). Ps. Your stand is not covered only the building and other permanent fixtures on the property

I got my house valued right after building it. The paint was still wet. And the “replacement cost” of my newly built hime was 20% more then the 20 or so invoices I had on my desk, which included the professional fees.

 

I got the valuer to admit off record that it is just what they do. To cover themselves, and to add some fat for the insurer.

[Reme Le Hane]

No, outsurance is insane, I left them ages ago. It's worth shopping around, I have moved many people away and it's utter bull**** that you pay less by going direct. When I moved from outsurance to Alexander Forbes I was saving 4k/year on a policy that was less than 1k/mo. My excesses all went down considerably.

 

I still shopped around, they came in at 50% higher for my motorbikebike at 20x the excess.

 

I a have a very upgraded spark 930,paid 38k for it, initial insurance was at 65k, after upgrades its now at 90k replacement value and I'm sitting at 160 odd a month. When the 2020 models come out, I just swing by my lbs and they will spin uo a new quote for insurance.

 

As its a high value, high risk specified item, its your job to ensure that's its correctly covered.

[ChrisF]

I got my house valued right after building it. The paint was still wet. And the “replacement cost” of my newly built hime was 20% more then the 20 or so invoices I had on my desk, which included the professional fees.

 

I got the valuer to admit off record that it is just what they do. To cover themselves, and to add some fat for the insurer.

 

Ironically a "re-build" is more expensive than a "new build".

 

The cost of demolishing the fire damaged section, removal, and then preparing for the actual build add significantly to the project cost.

 

 

House down the street burnt last year, late October.  Been "interesting" to see how they dealt with it, and being under-insured ....  Still busy with finishing touches .....  I would have been livid at the slow pace !!!

[Zeffer]

Would they settle based on the lower sum insured, or a % of the lower sum vs replacement value.

 

Example: Insured value = R 40,000 ; New replacement = R 80,000

 

Would insurance pay R 40,000 or 50% of that ( R20,000 ) because it is insured for 50% of replacement value ?

 

That is exactly what will happen. 

[Reme Le Hane]

That is exactly what will happen.

Not in my experience, for specified items it's been the insured amount. As far as I know claims adjustments is only applied to property and content.

 

I've had items that I did not update the replacement value and got paid out insured value, laptops replacement was 30k but it was insured for 23 and I got 23 less excess of R500, motorbike was over insured and I got paid out the full over insured amount less excess which was half the over amount so I still came out ahead.

 

Guess it also depends on weather you deal with an insurance company or a scam licensed as an insurance company.

[Jono Waddell]

Would they settle based on the lower sum insured, or a % of the lower sum vs replacement value.

 

Example: Insured value = R 40,000 ; New replacement = R 80,000

 

Would insurance pay R 40,000 or 50% of that ( R20,000 ) because it is insured for 50% of replacement value ?

No the average clause is generally not applied to an all risk item. 

[WR 1.0]

That is exactly what will happen. 

 

not necessarily, it would depend on the policy wording.

if it states new for old basis, then yes, average will be applied if you are underinsured.

if your insurer allows to insure your bike on an agreed value, then you get the amount you stated (less any deductables)

[Koos Likkewaan]

Thanks. Makes sense.