Why Proof of Ownership Matters in Insurance Claims (And How to Keep It Safe)

Posted on August 18, 2025 by PietMar

Why Proof of Ownership Matters in Insurance Claims (And How to Keep It Safe)

When disaster strikes and you need to claim from your insurer, one of the first things they’ll ask for is proof of ownership. This is especially true under the All Risks Section of your policy, which covers valuable items you carry with you outside your home.

The general conditions of every insurance policy give the insurer the right to request proof that you actually owned the item you’re claiming for. Without it, your claim could be delayed—or even rejected.

So, what counts as proof of ownership? And how can you make sure you always have it when you need it? Let’s break it down.

What is Proof of Ownership?

Proof of ownership can take different forms depending on the item:

  • Invoices or receipts – The easiest and most widely accepted proof.

  • Original packaging – The box the item came in often contains identifying details like the serial number.

  • Valuation certificates – Essential for expensive jewelry and high-value items.

  • IMEI numbers for phones – A unique identifier tied to every mobile phone.

For example, when claiming for a lost or stolen smartphone, the insurer will require the IMEI number. Without it, your service provider may not even be able to blacklist the device.

A Common Real-Life Example

Recently, I assisted a client with a lost mobile phone claim. The insurer required:

  1. A police case number.

  2. Proof that the phone had been blacklisted by the service provider.

The problem? The client no longer had the phone’s box, which contained the IMEI number. Without that IMEI, the service provider could not blacklist the device, and the process stalled.

This is a frustrating but avoidable situation.

Practical Tips to Protect Yourself

Here are simple steps to make sure you never get caught off guard:

  1. Take a photo of every invoice as soon as you buy something (jewelry, electronics, appliances, tools).

    • Then email it to yourself with a clear subject line like:
      Invoice – Microwave – 12/08/2025

  2. Keep a record of your phone’s IMEI:

    • Find it by dialing *#06#.

    • Take a photo of the IMEI (on the box or screen) and keep it with your invoice.

    • Send it to your broker so they can update your cover.

  3. Don’t throw away boxes immediately – At least keep those for valuable electronics until you’ve safely stored the details.

  4. For jewelry and other valuables, request and store valuation certificates. Update them every few years, as values can change.

Why This Matters

Insurance is there to protect you, but a claim is only as strong as the proof behind it. By organizing your invoices, certificates, and serial numbers now, you’ll save yourself frustration later.

A few minutes of preparation today could mean the difference between a fast payout and a denied claim tomorrow.

✅ Key takeaway:
Keep proof of ownership safe and accessible. A simple habit like emailing yourself invoices and serial numbers could save you hours of stress during a claim.

Disclaimer: This article is for educational purposes only and does not constitute financial or insurance advice. Always consult with your broker or financial advisor before making changes to your policy or cover.

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Insurable Interest – Why You Can’t Insure What You Don’t Own

Posted on August 18, 2025 by PietMar

In short-term insurance, there’s one golden rule that is often overlooked – you cannot insure something you don’t own or have a financial interest in. This is called insurable interest, and ignoring it can lead to major problems when it’s time to claim.

What is Insurable Interest?

Simply put, you must have a direct financial stake in whatever you insure. If the insured item is damaged, lost, or stolen, you must suffer a financial loss. If you don’t have this financial interest, your insurance company has no obligation to pay out.

Think about it this way:

  • You can’t insure your neighbor’s house unless you own it.

  • You can’t insure your friend’s car unless you’re financially tied to it.

Where Insurable Interest Causes Problems

Over the years, I’ve seen the same scenarios create headaches for clients:

1. Parent Buys a Car for a Child

The car is registered in the child’s name, but the parent wants to insure it on their own policy. On paper, the parent doesn’t own the vehicle, so technically they have no insurable interest.

2. Business Owner’s Personal Car on a Company Policy

A company (PTY Ltd or Closed Corporation) wants to insure a personal car belonging to the owner. If the car is in the owner’s personal name, the company has no financial interest in it.

3. Trust-Owned Vehicles on a Personal Policy

If a car is registered in a trust’s name, but insured under an individual’s personal policy, that individual has no legal claim to the asset.

These situations often only come to light at claims stage – and by then, it’s too late.

How to Solve the Problem

There’s one simple rule that will save you a lot of frustration:

DISCLOSE, DISCLOSE, DISCLOSE.

Insurance companies are far more accommodating when all the facts are on the table. In many cases, it’s possible to insure an asset even if the registered owner and policyholder are different – as long as the insurer is informed upfront and gives permission.

For example, I’ve never had a problem adding a vehicle in an individual’s name to a company policy when the full details are disclosed. It’s about transparency and proper documentation.

Key Takeaways

  • Rule #1: You must have a financial interest in what you insure.

  • Always disclose ownership details to your broker or insurer.

  • Get written confirmation from your insurer if the ownership and policyholder differ.

FAQ: Insurable Interest in South Africa

Q1: Can I insure my child’s car on my policy?
A: Yes, but only if you fully disclose the ownership situation to your insurer. Even if the car is registered in your child’s name, most insurers will allow coverage on a parent’s policy with permission and transparency.

Q2: Can my business insure my personal car?
A: Only if the company has a financial interest or the insurer explicitly allows it. Disclosure is key to avoid claim disputes.

Q3: What about a car registered in a trust?
A: If a vehicle is owned by a trust, it cannot be insured on a personal policy unless the insurer is informed and agrees. The trust holds the financial interest.

Q4: What happens if I don’t have insurable interest?
A: Claims may be denied or coverage could be invalid. Insurable interest is a legal requirement – insurers must know that the policyholder stands to suffer a financial loss if the asset is damaged.

Q5: How can I make sure my insurance is valid?
A: Always disclose ownership and usage details, get written approval from your insurer, and review your policy regularly. A quick chat with your broker can save major headaches later.

✅ Pro Tip: For peace of mind, always contact your broker before adding assets to a policy, especially if ownership and policyholder differ.

Disclaimer:
This blog post is for educational purposes only and is not intended as personalized insurance advice. Always consult your broker or insurer before making any changes to your policy.

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Why You Should NEVER Apologise!

Posted on August 12, 2025 by Piet Maritz

Why You Should NEVER Apologize!

…and how one innocent sentence could cost you your insurance payout

When you’re involved in a car accident, a pipe bursts in your flat, or a customer slips on your shop floor — what’s the first thing you feel like saying?

“I’m so sorry!”

But here’s the truth:
In the world of insurance, saying “sorry” can be a very expensive mistake.

Let me explain why — and introduce you to a powerful but often misunderstood insurance principle: Subrogation.

What Is Subrogation, and Why Should You Care?

Subrogation is a fancy legal word, but here’s what it means in simple terms:

When your insurer pays out a claim, they gain the right to step into your shoes and recover the loss from the party who actually caused the damage.

Think of your insurer like your Big Brother at school. Someone stole your lunch money, and your Big Brother sees it. He gives you his lunch to make sure you’re fed — but then he goes after the bully to get the money back.

Here’s the catch:
If you’ve already gone to the bully and said:

“It’s okay, I forgive you. I know it was just a mistake…”
You’ve just tied your Big Brother’s hands. He can’t do anything. You’ve compromised his ability to act on your behalf.

In insurance terms: you’ve just compromised subrogation — and that can void your claim.

3 Ways People Accidentally Destroy Their Own Claims

1. Admitting Fault at the Scene

It’s human nature to be polite and take responsibility — even when it’s not clearly your fault.
But saying things like:

“I didn’t see you”
“I’m so sorry, I was in a rush”
“It’s probably my fault”

…could be interpreted as an admission of liability.

2. Making a Side Deal with the Other Party

After an incident, someone may say:

“Let’s sort this out privately — no need to go through insurance.”

If you agree and later decide to claim, the insurer may refuse because the situation is legally compromised. They no longer have the right to pursue the third party, thanks to your agreement.

3. Failing to Report All the Facts

Some people hold back on reporting the details to avoid conflict. But leaving out key facts (or not mentioning the other party’s involvement) can cost you — especially if your insurer needs to recover costs from them.

What You Should Do Instead

✅ Stay calm and polite — but don’t admit fault
✅ Document everything: photos, names, contact info
✅ Report the claim to your insurer as soon as possible
✅ Let the insurer handle all third-party discussions

Remember: Your insurer is your Big Brother.
Their job is to protect you, pay you out, and fight your battles if necessary.
But only if you haven’t already given away the fight.

Bonus: You Might Get Your Excess Back!

Many people don’t realise this:
If your insurer recovers the cost from the responsible party, you may be refunded your excess.
But again — only if you haven’t compromised their legal rights by saying the wrong thing or settling without them.

Final Thought

Subrogation isn’t just a technical clause buried in your policy wording. It’s a powerful tool that protects you — but only works if you understand it and use it wisely.

So next time something goes wrong?

Don’t apologise. Don’t admit fault. Don’t make promises.
Let your insurer fight the fight.

Disclaimer: This article is provided for general information purposes only and does not constitute financial or insurance advice. Every situation is unique, and insurance policies differ in wording and coverage. Always consult your broker or insurer for guidance on your specific circumstances before making any decisions.

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8 Ways to Lower Your Car Insurance Premiums: Tips and Tricks

Posted on May 9, 2023 by PietMar

Are you tired of paying high premiums for your car insurance? The good news is that there are several ways to lower your car insurance costs without sacrificing coverage. In this blog post, we’ll share 8 tips and tricks for reducing your car insurance premiums and saving money on car insurance.

  1. Shop around for the best rates: One of the most effective ways to lower your car insurance premiums is to compare rates from multiple providers. Be sure to get quotes from at least three different insurance companies to ensure you’re getting the best deal.  BUT: policy wording and coverage are more important than a lower premium. Be sure you get what you want and need, and not just a lower premium.
  2. Increase your deductible: Your deductible is the amount you pay out of pocket before your insurance kicks in. By raising your deductible, you can lower your monthly premiums. Just make sure you have enough money set aside to cover the higher deductible in case of an accident.  BUT: be careful to save $10 on premium by selecting a $5000 a deductible (or excess) as opposed to a $1 000 deductible.
  3. Maintain a good credit score: Believe it or not, your credit score can affect your car insurance premiums. Insurance companies view individuals with good credit as less of a risk, so be sure to maintain a good credit score to qualify for lower rates.
  4. Bundle your policies: Many insurance companies offer discounts when you bundle your car insurance with other policies, such as home or content insurance. Be sure to ask about bundle discounts when shopping for insurance.
  5. Drive a safe car: Cars with high safety ratings and anti-theft devices can qualify for lower insurance rates. Be sure to research the safety features of your vehicle when shopping for a new car. Some companies charge a higher premium for a black car, as it is deemed more dangerous. Metalic paint is more expensive to repair. Some brands are more prone to theft and hijacking.
  6. Drive Carefully:  Protecting your no-claims bonus is a very good way to keep premiums low.
  7. Drive less: If you drive less than the average driver, you may qualify for a low mileage discount. Be sure to let your insurance provider know how many miles you drive each year to see if you qualify. In my experience the saving is negligible, but it is worth a try,
  8. Choose the right coverage levels: While it’s important to have adequate coverage, you don’t want to pay for more than you need. Be sure to review your coverage levels annually to ensure you’re not overpaying for coverage you don’t need.

By following these tips and tricks, you can lower your car insurance premiums and save money on car insurance. Remember to shop around for the best rates, maintain good credit, and choose the right coverage levels to ensure you’re getting the best deal. With a little effort, you can reduce your car insurance costs and put that money towards other important expenses.

 

Disclaimer: The information provided in this blog post is for general informational purposes only and should not be taken as legal or financial advice. The tips and tricks provided may not be applicable to everyone’s specific situation, as car insurance premiums are determined by a variety of factors, including driving history, location, and type of vehicle. We make no guarantees or warranties as to the accuracy or completeness of the information provided and disclaim any liability for damages arising from the use or reliance on the information provided in this blog post. We recommend consulting with a licensed insurance agent or other qualified professional for personalized advice regarding your specific car insurance needs.

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How to Become Wealthy: Investments

Posted on April 24, 2023 by PietMar

Here are some helpful tips for becoming wealthy through investments:

  1. Investing: The first step to becoming wealthy through investments is to actually invest – there’s no way around it! You can invest in stocks, bonds, mutual funds, or any other type of investment that aligns with your goals and risk tolerance.
  2. Stock Market: The stock market is one of the most popular ways to invest money. By purchasing shares of a company, you’re essentially buying a small piece of ownership in that company. As the value of the company grows, the value of your investment grows with it.
  3. Real Estate: Investing in real estate can be an excellent way to grow your wealth and generate passive income. You can buy rental properties or invest in real estate through real estate investment trusts (REITs).
  4. Mutual Funds: Mutual funds allow you to pool your money with other investors to create a diversified portfolio. This can help you to minimize risk while still enjoying the benefits of investing in the stock market.
  5. Risk Management: Managing risk is crucial when it comes to investments. Always do your due diligence before investing in any particular investment vehicle, and make sure to diversify your portfolio to minimize risk.
  6. Portfolio Diversification: Diversification is key to minimizing risk in your investments. Spread your investments across different sectors and asset classes like stocks, bonds, and real estate to minimize the impact of any losses.
  7. Retirement Planning: Investing in a retirement plan such as a 401(k) or Individual Retirement Account (IRA) can help you to grow your wealth in a tax-efficient manner.
  8. Wealth Management: Working with a wealth management professional can help you to make informed investment decisions and ensure that your investments align with your long-term financial goals.
  9. Asset Allocation: Asset allocation is the process of dividing your investments between different asset classes to maximize returns and minimize risk. Make sure your asset allocation strategy aligns with your risk tolerance and long-term financial goals.
  10. Capital Gains: Capital gains are the profits you make when you sell an investment for more than you paid for it. By investing in assets that are likely to appreciate over time, you can maximize your potential capital gains.
  11. Dividend Income: Some investments provide regular dividends, which are payments made by companies to their shareholders. By investing in stocks or mutual funds that pay dividends, you can enjoy regular income streams while still benefiting from potential capital gains.
  12. Tax Planning: Make sure you understand the tax implications of your investments. Consult with a tax professional to ensure that you’re taking advantage of any tax breaks or deductions that may be available to you.
  13. Economic Trends: Keep an eye on local and global economic trends that may impact your investments. Be prepared to adjust your investment strategy if necessary to stay ahead of the curve.
  14. Market Analysis: Stay informed about the markets and do your own analysis on which investments are likely to perform well. Keep in mind that past performance is not indicative of future results.
  15. Hedge Funds: For more advanced investors, hedge funds can be a way to access alternative investments like private equity or derivatives. Hedge funds often require high minimum investments and are typically only available to accredited investors.
  16. Invest in Yourself before You Invest Your Money: Read posts like these. Attend seminars. Talk to knowledgeable people. Read books and financial publications. Learn about economy. Empower yourself.

In conclusion, investing can be a powerful tool for building wealth over time. By following these tips, you’ll be well on your way to achieving your long-term financial goals. Remember to always do your research and consult with a professional before making any investment decisions.

 

Disclaimer: The information provided in this blog post is for educational purposes only and should not be considered financial advice. Investing comes with risk, and it is important to do your own research and consult with a professional before making any investment decisions. The author and publisher of this blog post are not responsible for any losses that may occur as a result of reliance on this information.

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How to Become Wealthy: The Ultimate Guide

Posted on April 21, 2023 by PietMar

Do you dream of becoming wealthy and achieving financial freedom? You’re not alone. Many people aspire to live a life free from financial worry, but they don’t know where to begin. In this article, we will explore some of the top ways to become wealthy and the steps you can take to achieve your financial goals.

Investments: One of the quickest ways to build wealth is through investments. Investing your money in stocks, bonds, or mutual funds can potentially yield high returns over time. It’s important to do your research and speak with a financial advisor before making any investment decisions.

Entrepreneurship: Starting your own business can also be a great way to achieve wealth. It allows you to be your own boss and potentially earn a higher income than you would working for someone else. However, entrepreneurship also comes with risks, so it’s important to have a solid business plan and financial backing. Never put something that works at risk to try something new that may not work.

Financial planning: Developing a solid financial plan can make a significant difference in achieving your wealth goals. This includes creating a budget, managing debts, and saving regularly. Consulting with a financial planner can help you create a plan that is tailored to your individual circumstances.

Real estate investing: Purchasing investment properties can also be a great way to achieve wealth. Rental properties can provide passive income, and capital gains from property appreciation can add to your overall net worth.

Passive income: Building multiple streams of passive income can be an excellent way to achieve wealth. This can include investments, rental income, book royalties, or even online businesses. Creating passive income streams requires some initial effort, but they can provide long-term financial freedom.

Savings: Building up your savings is also essential for achieving wealth. Setting aside a portion of your income each month can provide you with a financial cushion and allow you to take advantage of investment opportunities when they arise.

Education: Investing in your education can also be an excellent way to build wealth. This can include advanced degrees or certifications that can lead to higher-paying jobs or better investment decisions.

Networking: Building a strong network of contacts can help you find new business opportunities or investment ideas that you may not have discovered on your own.  Your network = your NetWorth.

Hard work and perseverance: Finally, it’s important to remember that achieving wealth takes hard work and perseverance. There is no overnight solution, but by setting realistic goals and consistently working towards them, you can achieve financial success.

In conclusion, becoming wealthy requires a multifaceted approach that involves smart investments, financial planning, and hard work. By implementing some of these strategies, you can achieve your financial goals and gain the freedom that comes with being financially secure. Remember to consult with professionals and make informed decisions, and you’ll be on your way to financial freedom in no time.

DISCLAIMER:

This is not advice. It is meant for informational purposes only. Please consult your financial advisor before making any changes to your portfolio or making financial decisions.

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Secure Your Family’s Financial Future: How to Determine the Right Amount of Life Insurance Coverage

Posted on April 19, 2023 by PietMar

Life insurance is a critical aspect of any financial plan. The purpose of life insurance is to provide financial security for your loved ones in the event of your untimely death (when would it be timely?). While it may seem daunting to determine the right amount of life insurance coverage, there are several factors to consider that can make the process easier.

  1. Debt: One essential factor to consider is any outstanding debt. If you have a mortgage, car loans, or credit card debt, your life insurance coverage should be enough to cover these obligations.
  2. Replacing your income: Life insurance should replace your income if you were to pass away. A good rule of thumb is to have coverage that is 10-12 times your income.
  3. Providing for your family: If you are the primary provider for your family, it’s vital to have enough life insurance to cover their expenses in the event of your death. This includes providing for their housing, food, and other basic needs.
  4. Children’s education: If you have children, consider providing enough life insurance coverage to cover the cost of their education.
  5. Other financial goals: If you have any other financial goals, such as leaving an inheritance or supporting a charity, you should factor those into your life insurance coverage as well.
  6. Taxes and Death Expenses: Additionally, it’s vital to have enough life insurance coverage to cover the taxes and final expenses associated with death, such as funeral costs, estate taxes, and other administrative expenses.

While all of these factors can seem overwhelming, consulting with a financial advisor (it is strongly recommended – somebody always pays for insurance – either you while alive or your family after your death. This is the only advice in this post- consult with an advisor.) can help you determine the appropriate amount of life insurance coverage necessary to meet your financial goals. A financial advisor can help you assess your specific needs and create a plan to ensure that your loved ones are financially secure after you pass away.

In conclusion, life insurance plays an essential role in providing financial security for your loved ones after you pass away. By considering all of the above factors, you can ensure that you have the right amount of life insurance coverage to meet your financial goals and provide peace of mind for you and your loved ones.

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Covid-19 Journal: Benji, John 12 Sermon, Brene Brown and Veronica Decides to Die

Posted on March 14, 2023 by PietMar

This is a real mixer of a title! Read to the end and you will understand.

Benji

Benji is our 13-year-old Yorkshire Terrier. Since we inherited him from my children, I am his Granddad. And we are very close. He follows me like a shadow. Drives with me (when it is not too hot) when I on to appointments. Lies with me when I drink my first cup of coffee in the morning. Sleeps with me until his grandma joins us, then he goes to his own bed.

Benji has many names. On Amazon KDP he is Benjamin Yorkshire with a host of books behind his name. He is also Wolbol (Yarn Ball), because he looks like a yarn ball after kittens got hold of it – especially when he gets out of bed. He is also Knopgat – because he is very independent and does his own thing. If he does not want biltong, he will turn away his head. If he wants you to pet him, he will allow you to do it. But if I want to pet him and he doesn’t want to, he becomes a Wildedier (wild animal) and violently jumps away.

From the above, you should be able to gather Benji and I are the best of friends. He is also my hiking companion, and we spent many hours by ourselves in the mountains. Sharing food, water, and companionship.

Last week Benji was lying with me when he suddenly jumped out of bed, his head shaking and looking a bit lost. Then he got back under the duvet in a drunkenly fashion. We thought it could be a stroke. (Fortunately, it is most likely Old Dog Vestibular Disease. You can Google it.) Thursday I mostly worked from home and Benji spent most of the day lying with me. I could pet him as much as I liked. Thursday, we saw the vet. He got a sore injection against nausea and drank some water. Friday, he lay with me as much as he could. He did not eat. Saturday, we took him for a follow-up and another injection. The improvement was remarkable. His head is still tilted, but he is much more stable.

And now he is not as tame and does not sit with me as he did the previous two days.

That is Benji.

US

Our reactions was also noteworthy. We spent as much time with Benji as possible, we thought this is an untimely end. And we are not yet ready to live without a dog! We enjoyed holding and petting him much more than usual. And, I think, he heard how much we appreciate him more times in two days than in a normal 2 months. We were saying goodbye while hoping for recovery. That is us.

And I was seeing this as if I am an observer.

Vulnerability

Sunday in church the sermon is about John 12 – Mary anoints Jesus’s Feet. The Minister brings an old story to life in a new way.

Suddenly I realize what happens in this story of Mary anointing Jesus’s feet is the same as the story of Benji and I! And thanks to Brene Brown and what she taught me about vulnerability, I see it as clear as I have ever seen anything.

It is a story of vulnerability!

Benji and I are both vulnerable. Being unsteady on his legs, not being able to walk, falling over, walking in circles – it is vulnerability in the extreme. We feel vulnerable, because we think we are going to lose something precious. In that vulnerability, we live authentically without boundaries. We share feelings and show our soft underbelly. We carry our emotions on our sleeves, so to speak.

Then there is a cortisone injection, things improve dramatically and returns to almost normal – and gone is the vulnerability! Just as suddenly as it began, I cannot pet and cuddle Benji, because he becomes a wild animal again!

And here is the thing. Both Benji and I are the losers for this. I have a need to pet him, but he does not allow me to do it. There is a totally different relationship possible should he allow me to pet him, but he never gets to really experience it. It is up to me, the human with insight, to meet Benji where he is. To not “force myself on him,” to not turn him into a wild animal.

But what about humans? The principle is the same – we have to meet people where they are, not where we are. There are people whom I can hug, and others I cannot approach within a meter! It is up to me to adjust to their boundaries.

John 12

Let’s return to John 12. Jesus is on His way to the cross. A stressful time. A vulnerable time. What if he played the He-man? The tough guy that shows no emotion. The strong man that is above it all? He would have missed out on a very intimate act of love, caring and empathy – at a time when he probably needed it most!

Can you imagine Mary’s vulnerability in this act of anointing Jesus’s feet? I can only imagine the consolation and healing(?) this act of Mary had for her. How many times she thought back to this after Jesus was gone and how it must have softened the sadness and longing.

And Brene Brown does not need my confirmation – but vulnerability makes us whole and through vulnerability we allow each other to become whole.

Vulnerability requires guts! But it is worth risking. I cherish the Thursday and Friday I had with Benji and if he were euthanized on Saturday, those two days would have been what I remembered. Along with all the other good memories.

 

That is Brene Brown, whom I really like.

And Paulo Coelho and Veronica Decides to Die also hits the nail squarely on the head!  We appreciate life a lot more when we think it is getting scarce. We appreciate each other more when we realize “times are getting real few.”

Benji and John 12 gave me much more insight into Brene Brown’s message of the importance of vulnerability. I will try to live with even more vulnerability going forward. And I will definitely try to appreciate my time (life) and those of the people close to me, much more. Stop more often to connect and listen and be there for each other.

And that is the story of

Benji, John 12 Sermon, Brene Brown and Veronica Decides to Die

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Insuring Your Property: The Importance of Accurate Valuations to Avoid Underinsurance and Overinsurance

Posted on March 13, 2023 by PietMar

It cannot be repeated enough that, although valuing a building or content for insurance purposes can be a tricky business, it is important for the insured to determine accurate valuations and insured amounts to ensure adequate coverage in the event of a loss.

For contents, taking an inventory of all items and their current market value is a good approach. It’s important to remember to value items as new-for-old, which means the replacement value of an item as if it were new at the time of loss, regardless of its age or condition.

When it comes to valuing the building, it is recommended to consult with a reputable builder in the area to determine the per square meter building cost. This can serve as a good starting point for calculating the total value of the building. However, it is important to consider additional costs such as demolishing and rubble removal, professional fees for new plans, and council approval fees. The building includes border walls, paving, swimming pools, lapa’s and fishponds. Retaining walls must be discussed, as it is not automatically covered.

While it may be tempting to rely on a thumb-suck estimate, it is important to remember that inaccuracies could result in underinsurance or over insurance, both of which can have serious financial consequences. Hiring a professional to do a valuation is the best option for ensuring accurate and adequate coverage.

An accurate valuation is also crucial in preventing the application of “average” in the event of a loss. “Average” is a provision in insurance policies that may be applied when the sum insured is found to be less than the actual value of the property at the time of loss. This means that the insurer will only pay out a proportionate amount of the claim based on the underinsured value of the property.

For example, if a property is insured for R500,000, but its actual value is R1,000,000, and it sustains damage worth R100,000, the insurer will only pay out R50,000 (50% of the claim) if the policy has an “average” clause. This is because the property was only insured for half of its actual value.

By obtaining an accurate valuation of the property, the insured can avoid the application of “average” and ensure that they are adequately covered for the full value of the property. This is important to prevent financial losses in the event of a loss or damage to the property.

 

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Your Solar Installation and Insurance

Posted on March 12, 2023 by PietMar

On Twitter Mayor Geordin Hill-Lewis says: “10% of all solar installations in Cape Town since 2018 were in Jan and Feb this year!” (2023)

Good news, because every solar panel installed reduces the load on the grid and brings Cape Town closer to being immune against loadshedding (if it will improve the grid is not in my experience to answer!)

My experience is in Short-Term insurance and here are a few things to keep in mind (assuming this is a fixed, permanent installation) regarding Solar Installations:

1) Home Installation: Notify your insurer that the installation was done (sending the detailed invoice is a good idea). Be sure that the insured value of the property is enough to cover the increased cost of the Solar Installation.

2) Commercial Installation: Be very sure to notify your insurer about the solar installation, as it is by nature “Goods in The Open” and there are requirements for Goods in the Open. In essence, the insurer wants to know when they insure goods that is outside the building – it is not automatically covered.

I would prefer to see the Solar Installation on the schedule with an insured amount and corresponding premium.

From everything I read, criminals love to steal solar panels, the batteries and surely inverters, too. Make sure that you have adequate Theft cover to protect an expensive asset against loss due to theft.

Lastly: Inverters and MPPT’s (not sure they are still separate from the invertors these days) are electronic equipment and it is worth considering to insure it under the Electronic Section of the policy.

Lastly, it goes without saying that any solar installation must comply with SANS and should come with a Certificate of Compliance (also a good idea to email that to the insurer or broker).

Bottom line is don’t be so excited about your freedom that you forget about the insurance and make sure you get the right cover for YOU! Commercial insurance is not one-size-fits-all.

Feel free to contact me regarding Short-Term Insurance Questions!

#insurance #property #solar #batteries

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