“Seventy percent of South African vehicle owners do not have car insurance and the insured majority’s policy doesn’t have third-party insurance. This is due to insurance policies not being legislated in our country,” says spokesperson for Old Mutual Insure, Christelle Colman.
“Those insured also do not realise the importance of reading and understanding their policy limitations, for example, the risks of frequently lending your car to other people,” says Colman, adding that it pays to be wary of other topics not frequently discussed between the insurer and policyholder, such as cover for an additional driver and the process of notifying your insurer on any changes that might affect the policy.
For rental homes, Colman says that most insurance policies exclude cover for rental homes, therefore it is the policyholder’s responsibility to notify the insurance company if they need any additional cover.
“It’s also important to notify them of any home upgrades or changes such as residential address changes, new tenants, or when extending or building extra rooms in the yard. Insurance policies usually have a term called ‘average condition or underinsurance’, where they usually pay half the claim if the home owner doesn’t notify them of any upgrades or changes that might impact the value of the policy, should anything happen.”
Colman wraps up by stating that policyholders should always ensure that their home insurance covers the property for the cost it would cover to rebuild it, not what the value it was purchased for.