The Home Loan Estimator, a Tool Every Home Buyer Needs

• So, we have looked at the more expected incidents like crime and accidents, but what are some of the other risks to our homes and cars that we don’t often think about?

Theft is one thing but there are other major risks like fires, floods and storms that you need to protect your valuables against. You just have to think about how much it would cost to replace every single item in your home right at this moment.  

When you have a look at the impact of the intense weather experienced lately, most of the claims are related to motor vehicles. When the hail season arrives, we receive anything between 2000 – 3000 vehicle claims, which is more than double the amount that we usually deal with at any given point in time.

• Any extra advice for people who are insured, or are looking to be insured but are struggling to afford the premiums?

If people are really struggling financially, the best advice would be to firstly review their policies and ensure that the insured value (as an example) of their vehicle is correct. If a vehicle is no longer financed the insurance cover may be changes to a less expensive cover, like Third Party cover. This means that your vehicle is not insured, but a third party claim of another vehicle that you may have damaged will be covered. You can then just insure your own vehicle against fire and theft, but these are only good options if you really have no other choice. The best situation would be to be covered fully throughout the year. It is important to note that all financed vehicles must be comprehensively insured for the duration of the finance agreement.

When it comes to your home, keep in touch with your insurer and ensure that the policy is reviewed at least annually. Let them know of any advances and/or changes you have made in terms of security, i.e. addition of burglar bars, an alarm system, or any other security features. This could have an impact on the overall premium and result in a discount.

Policies are automatically renewed annually and most people do not realize that the value of vehicles may reduce. It is important to ensure that the adjustment is affected timeously. The addition of new home contents items over a 12 month period can also have an impact on the insured value. This can have a negative impact and result in you being underinsured should a claim arise. Update your inventory annually to prevent average being applied to your claim.

There you have it – there are a bunch of things that we can do to ensure that our valuables are protected in 2017. On behalf of everyone here at Absa, we wish you a safe and memorable festive season.