A combination of self insurance and a policy can save you - 02 Jul 2010 10:33
A combination of self-insurance and an insurance policy can help you reduce the overall cost of insurance, says Gari Dombo, Managing Director of Alexander Forbes Insurance. While many consumers are fearful of touching their insurance policy for fear of reducing their cover, it can help you save in cash-strapped months.
According to Dombo, the smaller All-Risk insurance items such as cellphones, rings and watches are easily replaceable without an insurance policy. So save up enough money to allow you to replace these and take them off your insurance policy. That way you don’t pay for these items every month. Certain items might not even require insurance, but perhaps only travel insurance when taking these items abroad.
Self insurance is the act of the policyholder saving money each month to cover the replacement cost of certain items. The policyholder pays for the items from his or her savings when they’re damaged or stolen instead of putting a claim through to the insurance company.
While Dombo recommends self-insuring for certain low-cost and easily replaced items, he warns that those items that are essential for the policyholder’s survival should not be uninsured. Whether self insuring or going through an insurer, you cannot underestimate the importance of having some form of cover. Not having insurance could be more financially crippling than having insurance during tough times.
A combination of self-insurance and an insurance policy can help you reduce the overall cost of insurance, says Gari Dombo, Managing Director of Alexander Forbes Insurance. While many consumers are fearful of touching their insurance policy for fear of reducing their cover, it can help you save in cash-strapped months.
According to Dombo, the smaller All-Risk insurance items such as cellphones, rings and watches are easily replaceable without an insurance policy. So save up enough money to allow you to replace these and take them off your insurance policy. That way you don’t pay for these items every month. Certain items might not even require insurance, but perhaps only travel insurance when taking these items abroad.
Self insurance is the act of the policyholder saving money each month to cover the replacement cost of certain items. The policyholder pays for the items from his or her savings when they’re damaged or stolen instead of putting a claim through to the insurance company.
While Dombo recommends self-insuring for certain low-cost and easily replaced items, he warns that those items that are essential for the policyholder’s survival should not be uninsured. Whether self insuring or going through an insurer, you cannot underestimate the importance of having some form of cover. Not having insurance could be more financially crippling than having insurance during tough times.