Securing the correct household insurance cover

Nthabiseng Moloi, Head of Marketing & Brand at MiWay.

According to the SAPS, household burglary rates in South Africa are at an all-time high, meaning it has never been more important to be appropriately covered in the event of theft. After all, the only thing worse than having your valuables stolen is realising your household insurance policy doesn’t provide suitable cover.

Many crime victims only discover once it is too late that the terms of their policy do not provide appropriate compensation in instances of theft, leaving them frustrated and out of pocket. In most cases, this is simply the result of presenting inaccurate information during the course of the initial sales call when a risk is assessed, as many policyholders do not always fully understand the questions asked.

In order to ensure that you are properly insured should your home become a target of crime, make sure not to gloss over the risk assessment questions, as this could make the difference between full and partial compensation. Remember, should you at a later stage discover that you presented incorrect information, you can correct this.

Here are a few key pointers to bear in mind when it comes to your household insurance policy:

Location, location

The location of your house is key when it comes to assessing household insurance, playing a pivotal role in assessing your risk profile and consequent premium. But what makes a house high-risk? Essentially, if your house is located outside an estate or secure complex, and alongside an open space like a sports field, forest or veld, it makes you more vulnerable to theft and thus raises your risk profile. If you are unsure as to whether or not your abode falls into this category, make sure to ask the sales agent to clarify the exact parameters, so that you are appropriately covered in the event of loss.

Security features

Alarms tend to be a de facto feature in most South African homes, but mean very little if they are not switched on. So while you might be able to confirm that you indeed have a security system in place, your claim will not be paid out should it be discovered that you weren’t present and it wasn’t activated during the time of a burglary. So make sure, even if you are popping out for a short time, that your alarm is activated, as insurers can access your alarm reports and easily see that your security system was unarmed during the time of a burglary.

High walls

Given the state of crime in South Africa, few houses are without high walls these days. But how high is high enough? Typically, a high wall is classified as 1.8m or taller, so it is important that you measure your walls’ exact height before simply confirming that your perimeter walls are indeed high. However, while the specifics of your wall’s height are unlikely to make or break a claim, it is important that the information you provide to your insurer is accurate should you wish to have your claim settled swiftly.

Remember, when you take out an insurance policy, you are essentially transferring a certain risk to your insurer and it is vital that they then understand the exact nature of the risk they are inheriting. So while it might feel like you are being unnecessarily interrogated when taking out a household insurance policy, your ability to provide accurate information will be key to insuring that any future claims are fully paid out.