select
|

Insuring against a tighter economy

(Article by Bertus Visser, Chief Executive of Distribution at PSG Insure)
 
In light of South Africa’s recent downgrade to junk status, many analysts are warning we need to tighten our belts and prepare for tougher economical times. Looking at your insurance and ways you can save at home are good places to start.

Keeping you and your money safe

Avoiding having to claim on insurance of course helps keep your premiums down and provides you with a no claims bonus if you have such a facility on your policy. Great tips to try at home include turning off electrical points and appliances when they are not in use. This will save on electricity costs, which helps your pocket a little, and reduces risks of appliances or cables shorting and causing a fire, for example.

If you have a leaking tap, or any other leaks around the house, get these repaired. You will be saving on water costs, as well as repair costs down the line, particularly if the leak is coming from the roof and impacting walls. Remember that for insurance purposes, your roof has to be maintained so that you will be covered. It is worthwhile to have leaks detected and sorted as soon as possible.

Put your plans in park

If you were thinking of buying a new car this year, it might be best to wait it out a little. New cars, or even those that are second hand may incur high repayment costs and should be insured. A newer model of vehicle will generally attract a higher insurance premium as well. If you can, maintain your current vehicle to keep it in line with your present insurance cover, making sure you have regular services (usually once a year, or every 10-15 000kms, or depending on your vehicle’s specifics) and that your tyres have the right tread on them (no less than 1.6mm legally). You can also reduce your sum insured value on your existing vehicle, which may also reduce your premium.

Be import-savvy


Unfortunately, as the exchange rate fluctuates, so does the value of all the goods in your home that are imported. Chances are that items from your television to your porcelain tiles would cost more to replace today than when you bought or installed them, and they need to be sufficiently covered by insurance. It would be worthwhile to re-evaluate your contents and increase your cover accordingly. Keep in mind that being underinsured will be the most costly of all for you, should you need to claim. If you are underinsured your claim may be repudiated altogether, or will only be paid out proportionately. What this means is that if your contents value is actually closer to R500 000, and you have only insured for R250 000, your insurer may only pay out 50% of R250 000, which would be very difficult for you financially.

If you are unsure about any of your current cover, chat to your insurance provider or broker.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK