Many property owners only discover they are underinsured after a claim — and by then, it’s too late.
If your building or contents are insured for less than their actual replacement value, your insurer can apply the average clause.
This means you will only receive a portion of your claim, even if the damage is partial.
For example, if your property is worth R1 000 000 but insured for only R500 000, you’re only 50% covered. If a storm causes R200 000 worth of damage, your payout could be reduced to R100 000.
Avoid the financial shock:
- Review your insured values at least once a year.
- Factor in building cost escalations and inflation.
- Use a professional valuation for accuracy.
Underinsurance can turn an already stressful situation into a financial disaster. Make sure you’re covered for the real value — not last year’s estimate.
If you are in need of Short-Term insurance, contact us today for an obligation-free quote and find out if you are sufficiently covered!
lizette@4dstc.co.za
012 991 9650
