Barry Ritholtz once said "People who work in specialized fields seem to have their own language. Practitioners develop a shorthand to communicate among themselves. The jargon can almost sound like a foreign language".
Your short term insurance policy should not sound foreign, and the best interpreter to assist you in understanding will not cost you an arm and a leg... MAKE USE OF A BROKER.
The Broker will advise you on matters of insurance, and will act on your behalf in negotiation and guidance of the purchase of insurance cover.
What are the specific services that insurance brokers ussually offer? The Broker will conduct an analysis of your insurance needs. Based on this analysis, the Broker will secure quotations on appropriate insurance products for you, and wil explain the details of each product.
The Broker will also render Claims assistance and help you through the Claims process from teh start to finalisation of the Claim.
Each year at renewal of your portfolio, the Broker will review your current insurance portfolio and the Insurer's renewal terms and will advise you of any changes to cover and premiums.
Seeing that you have read teh article up to this point (and well done), we through we would add some pertinent pointers, use it; don't use it?
Insurance is based on utomost good faith. Premiums are based on the risk information supplied to the insurer. Always disclose honestly.
Not a good idea to inflate or (even slightly) increase the value of your claim, as your whole claim may be rejected.
Under insurance could be described as the occurrence when there is a shortfall between the amount of cover selected and the actual replacement value of what is being insured. In the event of a claim, the principle of 'average' (and no wee are not talking here about the Sharks average performance over the past few weeks on the rugby field) would then be applied.
Average is an insurance principle which has frustrated many insured clients - yet it is a simple and easy one to understand. If an item or property is underinsured, the insured must bear a rate able proportion of each and every loss. Technically, you become your own insurer for the balance of the loss.
For example, let's say you insured your household contents for R80, 000 and your house is broken into. Goods with a replacement value of R30, 000 are stolen which you claim under your Home Contents policy. Following assessment, it is found that the current replacement value of your total Household Goods before the theft was actually R100, 000 and not R80, 000 as insured. This means taht you were underinsured by 20% and Insurers will pay only 80% of your claim, i.e. R24, 000 and not the R30, 000 claimed.
What is the replacement value of goods?
The replacement value of goods is what it would cost you, at the time of a claim, to replace all your belongings with similar brand new ones.
Changes of informations and / or cirumstance could affect your cover and your premium so you should inform your insurer of them immediately. Some examples are moving to a new residence, changing the regular driver of your insured motor vehicle, convictions for offences relating to dihonesty (against you or someone covered under your policy) and getting tenants to rent your property.
An excess (also known as a deductible or first amount payable) is charged to minimise the number of small administrativelyexpensive claims, or to reduce a loss ratio, and to impose a duty of care on the insured. Excesses are usually charged either as a percentage of the claim, or as a fixed amount.
Using your car for business or for professional purposes?
Make sure that the 'Use' for which is it insured supports this, and that your insurer is in the 'know' to avoid problems later when you claim.
Letting your children drive your car without telling your insurer that they are regular drivers may result in a rejection of your claim.
It is advisable to have jewellery valued by a reputable jeweller and supply a copy of the valuation certificates to your insurer. In most cases, this is a requirement of cover. In the event of a claim, replacement of such jewellery will be hassle free as Insurers will have exact descriptions of the items.
Doing renovations to your house? Poor design and faulty workmanship may result in it not being covered by the insurer. Also important to check with the building contractor that they have adequate Contractors All Risk Cover in place.
Test your home alarm system on a regular basis.
Test the tracking device on your vehicle on a regular basis.
Don't become a vitim of smash & grab. Ensure that valuables in your vehicle are not visible by others.
In the event of a claim, notify your Broker within 30 days from date of occurrence.
Insurers reserve the right to repair, replace or make cash settlements in the event of a claim.
Should you require more information on how your short term insurance portfolio can be tailor made to suit your needs, we kindly invite you to contact Marius Marais at the Scottfin Scottburgh office.