27/02/2019
There are calculations you should know about when it comes to certain parts of your short-term insurance cover. A principle of average is applied to the fire, building, office contents and glass sections in your policy, which essentially means that if you are underinsured, your claim pay-out will reflect that.
Consider, for example, a building insured for R500 000 when its actual replacement value is R1 million. In this case, only half of the property is insured. In turn, only half of claims will be honoured. So, if there is damage to the value of R100 000, only R50 000 will be paid out (less any applicable excesses). It is therefore essential that the value of an asset is accurately recorded in your policy schedule at the time of loss. Read more > http://bit.ly/2DLTjvg
