Don’t Outgrow Your Home Insurance - 28 Aug 2009 15:46
The value you placed on your home and household items is rarely the same from year to year. Property values appreciate, the rand depreciates and we accumulate more. If you do not have home insurance that reflects the current value of your home, you could be out a lot of money.
What is the replacement value of your contents insurance? You may have paid R100,000 for the contents of your home about 2 years ago, but the value of the money that bought them has dipped since then. Being paid out R100,000 for items that now cost an extra R50,000 adds disappointment to an already traumatic event.
Find out what the current replacement value is for your contents - especially specialist items like jewellery, art and heirlooms that don’t decrease in value over time. Other items, such as your lounge suite, may not be worth as much as when you bought it, but to replace it will cost more than it’s worth now. Make sure you’re insured for what a new suite would cost you.
Working out current replacement values will take some time. But it’s worth doing every year. Being under-insured is like insuring half the contents in your home. Add new items to the list as you accumulate them or take them off if you sell them. Just make sure to keep your home and contents insurance up-to-date.
The value you placed on your home and household items is rarely the same from year to year. Property values appreciate, the rand depreciates and we accumulate more. If you do not have home insurance that reflects the current value of your home, you could be out a lot of money.
What is the replacement value of your contents insurance? You may have paid R100,000 for the contents of your home about 2 years ago, but the value of the money that bought them has dipped since then. Being paid out R100,000 for items that now cost an extra R50,000 adds disappointment to an already traumatic event.
Find out what the current replacement value is for your contents - especially specialist items like jewellery, art and heirlooms that don’t decrease in value over time. Other items, such as your lounge suite, may not be worth as much as when you bought it, but to replace it will cost more than it’s worth now. Make sure you’re insured for what a new suite would cost you.
Working out current replacement values will take some time. But it’s worth doing every year. Being under-insured is like insuring half the contents in your home. Add new items to the list as you accumulate them or take them off if you sell them. Just make sure to keep your home and contents insurance up-to-date.