Avoid Disaster This Festive Season
With the festive season beckon upon us, South Africa usually
experiences high road accidents fuelled by an increased number of
cars on the roads vying for time-out at the country’s festive areas.
Also, there are an increased number of criminal activities around
residential areas whilst home owners are away from their dwellings.
Unfortunately, South Africans usually fall prey to increased
short-term insurance claims due to these festive season activities.
The sad thing is, claims do not only bring about a financial dent
due to the excess one needs to pay for the claims but also almost
guarantee an increased monthly premium once the new year kicks in.
It is true that family time-outs require lots of planning and the
focus usually tends to fall mostly on where to go, how to get there
and what to do when you arrive at the beach, game reserve, golf
course or any other holiday destination of choice. Little or no
thought is given to the home front before you hit the road,
sometimes with disastrous unforeseen consequences.
These consequences are emotionally and financially strenuous on
return from holiday to families who make claims from short term
insurers that sometimes charge access before the circumstances are
brought to normal or acceptable standards. The thought of returning
from a well-deserved holiday to stolen belongings cannot be soothing
to anyone. Families need to take a look at their homes and also
review terms and conditions of their insurance policies to ensure
that these circumstances are covered before departure to avoid some
of these unpleasant results.
One old doctor once said “prevention is better than cure” in this
case, it can pay off financially too. The lower the claims, the
lower the premium or the escalation thereof in the long term. Also,
many short-term insurers offer special rates and savings for
policyholders who take extra security precautions and do not claim
regularly. You could also get a bonus for not claiming over a period
of about three to five years. This is standard with most short-term
insurers in South Africa. Ask your short-term insurance adviser what
savings might be applicable in your case.
It
is common practice according to LUASA – the insurance industry
watchdog – that when your risk portfolio changes for the better, you
can negotiate a better premium or lower excess.
Living in a secure complex can be a qualifying factor as is adding
additional security features to your home like an alarm system and
having someone stay in whilst away. Families could also avoid the
road carnage by planning holidays earlier than busier times or
travelling opposite busier destinations.
Other things residents could get used to do according to ADT
security, is to ensure that all newspaper or any other mail
subscriptions and deliveries are cancelled before departure lest
they make passing wanna-be criminals aware to the fact that there is
no one at home.
If
you have an alarm system and have informed the insurer about this,
make sure it is in working order at all times. Test it regularly,
especially after heavy storms and power disruptions. The system’s
guarantee and your insurance cover may be compromised if your alarm
system is found to be out of order at the time of the claim. Always
switch on the alarm system when you leave home. If your alarm is not
switched on at the time of an unforeseen break-in, an insurer can
refuse your claim.
The most important of them all, short-terms insurance companies
would advise consumers to check that their insurance is up to date,
with sufficient cover for your vehicle, home and household contents.
Make sure your instalments are in order and that you haven’t
defaulted – you could call the call-centre of your insurer to verify
this, their calls are usually recorded giving you proof of the
conversation. Also re-evaluate your belongings and ensure there is
enough cover over them else you’ll loose out should anything occur.
Essentially, if your insurance premium covers less than the
replacement value of stolen or damaged items, your claim will be
covered on a proportional basis rather than in full.
Otherwise, include additional cover by taking international
short-term
travel insurance if you are going anywhere outside of
South Africa. If you have a credit card, your packages sometimes
include this. The best you could do is check, verify and ensure, if
all else fails, you’d know you gave it your best.
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