Insuring a home move

Gari Dombo, Managing Executive of Sales and Service Distribution at Alexander Forbes.

The state of South Africa’s economy and high unemployment are stumbling blocks for young adults keen to spread their wings and move into their own places.

However, for those fortunate enough to enjoy financial well-being and the ability to spread their wings, Gari Dombo, Managing Executive of Sales and Service Distribution at Alexander Forbes, says that conducting a few important checks and making an informed insurance decision can make moving to a new home less stressful. 

Dombo suggests that you investigate the moving company’s conditions of cover. Ask for a copy of their goods-in-transit insurance policy, and check your or your parents’ existing Household Contents policy cover carefully. If you need help call your insurer or broker to clarify what your policy already covers.

Ask what excesses apply. For example, would you be able to pay R3000 upfront as an excess to replace a television that is damaged in the course of the move?

Some insurers only provide breakage cover if the goods are professionally packed so check for that before packing the goods yourself.

“If you place items in storage, read the fine print of your contents policy and protection offered by the storage provider”, says Dombo.

Dombo recommends that South Africans make use of the following list of what could possibly go wrong, when discussing insurance cover with the mover and the insurer.

• The box is dropped before it is put on the truck, or after it is taken off the truck;
• Someone steals a valuable item from the box;
• A box goes missing and is not delivered;
• The truck is stolen with your goods on it;
• The truck catches fire but there is no accidental collision;
• The truck has an accident;
• The truck is in an accident and thieves escape with your property that fell onto the road;
• You open a box and find that your valuable vase has been cracked or broken in the move;
• The furniture is scratched or broken;
• It rains and everything gets wet.

By doing the checks you will be able to make an informed decision on whether to buy the insurance through the mover, to buy separate transit cover though your insurer or broker, or to go with the existing cover on your Household Contents Policy.

If you do not have cover for valuable portable possessions such as jewellery and gold coins when removed from the home, be sure to discuss this with your insurer. This property may have to be specifically insured during the move.

He adds that “Moving is a good time to check your household contents are insured at the correct value as a new home often means new belongings,” says Dombo.

Moving may have implications on your future contents premiums and motor premiums if the area is considered more risky by the insurer. You will need to advise your insurer of the new address and about the security at the new home and whether or not the car is parked in a garage. It is advisable to do this before the move.

You officially become the owner of your new home once the property is transferred into your name. Dombo says, “Your insurance policy needs to be updated to reflect how much your new home would cost to rebuild.”