Crime stats highlight need for adequate insurance
The SAPS report also revealed that residential burglaries actually fell 23% in the four years preceding 2008/09. However, household robberies, a more serious form of crime, increased by 100% in the last five years.
According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, the SAPS report show that security of the home is still a very real concern for many South Africans. "Given the high rate of burglaries and robberies from homes, it is essential that people continue to prioritise security measures in their homes such as alarm systems, security gates and burglar bars."
Fourie says these kinds of measures can help to deter potential criminals from targeting a property, as well assisting in reducing insurance premiums. "Insurance companies calculate the premium someone should pay based on the level of risk that a client represents, so the more one can do to minimize the likelihood of someone breaking into your home the better your risk profile will be."
She says one of the problems many people face when insuring their home contents is failing to insure for the correct value. "Many consumers tend to take out a home contents insurance policy and renew it every year, without taking the necessary steps to update their level of cover. Some people may feel this is a risk worth taking but many others simply don't realize the impact of underinsuring their contents and what this means when it comes time to make a claim.
If a home contents insurance policy has cover for R150 000 but the contents are actually worth R300 000 then the consumer will be underinsured by 50%. As the premium only covers the risk of half of your household goods, the insurance company will only pay out half of the claim, so the insured would receive R75 000 if they filed a claim for R150 000.
Fourie says the other problems people face with regards to insuring their contents is price inflation. "A piece of electrical equipment that cost R5 000 ten years ago, could now cost twice that to replace. However, people only tend to assess contents on the amount they paid when it was first purchased, putting them at risk of underinsurance."
Over-insurance is also an important point for consumers to bear in mind. "If there are items in your home you would not want to file a claim for in the event of theft, it is important to contact your broker or insurer to make sure that these items are excluded from your policy, which would also help to reduce your insurance premium."
Featured Don’t fall for these credit repair scams
You may have received a notification from someone claiming that they can fix your credit score in a matter of days. Unfortunately, this is too good to be true.
Should you share a bank account with your partner or a friend?
If you’re living with your long-term partner or a friend, it’s likely that your finances have become entwined over the years and you no longer keep strict track of who owes who what. Perhaps it’s time to mix your finances officially with a joint bank account.
How to protect yourself from financial fraud
Financial fraud is prevalent in South Africa, as it is globally. According to the South African Banking Risk Information Centre (SABRIC), cybercrime, in particular, is becoming even more common than ‘traditional’ bank crimes. In 2019, some R284.4 million was stolen via digital means, an 8% increase from 2018, while credit card fraud accounted for R37.2 million.
Colosseum Deluxe Holiday Special
Price: From R900
When: Until 30 September 2020
Where: Cape Town
Pure Day Spa Mother’s Day Special
When: Until 09 May 2021
Where: Cape Town
The 41 Tuesday Specials
Price: Available on request
Where: Cape Town