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left with nothing: learning the hard insurance lessons of knysna

by:NULITE     2019-08-26
As people of professional insurance, we see our disaster.
However, few people have recently approached the terrible fires in South Cape Province.
Social media has given those of us who are further away a little insight into the scale of the disaster.
But visiting the area after the fire really gives people an idea of the huge things that have happened and how the lives of thousands of people have been destroyed.
The desolation here is almost impossible to describe.
This is indeed a catastrophic event that will take many, many years to overcome.
A report on the cause of the fire has now been published, and it is found that people may cause fire;
It may never be known whether it was arson or a terrible accident.
Of course, the prevalence of exotic vegetation exacerbated the fire.
One benefit of this tragedy is the determination of local authorities to create more fires
Some use very strange vegetation to resist accommodation.
But it will provide cold comfort to those who have lost everything.
In five days, as many as 30 fires raged in Knysna, Sedgefield, Plettenberg Bay and other areas, destroying hundreds of homes and businesses and being
The initial estimate is between R4 billion and R5 billion, although the final cost may be higher.
It is worth remembering that the loss is not only economic loss;
But how can people pay for memories, precious property, houses (
Not the House)?
How can someone recover completely from such a disaster?
Nevertheless, many residents have begun to clean up their lives in the face of adversity.
Unfortunately, some people will never be able to restore what they have;
It is likely that those who can have the proper insurance already.
Like all other insurance companies that manage claims related to Nankai Puda fire, holard has invested resources to help policyholders get back on their feet.
This is a very complex task that takes some time to complete, involving a wide variety of people: brokers, claimants, loss adjusters, engineer quantity surveyors and others are involved in helping people get back what they have lost.
Unfortunately, it is already clear that many people are not covered properly and accurately.
Losing everything you have is a difficult lesson (or much of it)
-Then find out you are under insurance.
The ultimate goal of good insurance is to enable people to create and secure a better future.
But it is almost entirely up to the policyholder to have a clear understanding of the insurance they should have and to purchase it;
In this regard, the advice of reputable and competent financial intermediaries can play a vital role.
So now that the flame has been doused and the tears of people have basically dried up, what lessons can all of us learn from this tragedy?
Lesson 1: Make sure your cover is accurate (and up to date)
One basic aspect of making an insurance choice is cost: How much do I want to insure my property and what is my premium?
The simple and direct answer is to make sure it\'s worth-not much.
An important consideration here is the concept of \"average.
This is a standard insurance practice that works when you are underinsured and suffer partial losses.
Basically, this means that you will be responsible for the underinsured part of your loss.
For example, if your house is worth R1 million, but you only have R500 000 insured for it, you will not get full coverage if it is partially destroyed.
If the damages are R300 000, you will only be compensated for the R150 000, which actually leaves you out of pocket.
In addition, the unique costs associated with historic residences and existing building codes may have an impact on the value of your house.
For example, when you rebuild, you may have to install a heat pump or a solar fountain instead of a normal one.
Also keep in mind the interests of other parties, such as your bank affecting your settlement if your property is mortgaged.
Of course, when you have similar insurance with several insurance companies, double insurance can complicate the claim.
To avoid double insurance, you should have an annual review of your portfolio with your broker.
Lesson 2: Know your cover-the terms and conditions assumptions are the root of all fouls --ups.
It is very important to know what you are covered, not what.
For example, your building (
Or aspect, such as roof)
Considered as \"standard\" or \"non-
Standard \"-the latter means a higher risk factor and therefore a higher premium?
It is important that your insurance accurately reflects your assets?
Also, do you understand the difference between \"partial loss\" and \"full loss?
When it comes to quantifying your losses, the loss regulator looks for components that are still intact;
If some walls or base plates are in good condition, you will only be covered for partial loss.
In this case, of course, the average may apply if the total amount of insurance is insufficient.
One more thing to keep in mind: the land where your home is located is not safe and you can only ask for construction and improvement.
Facilities such as roads, parking lots, swimming pools and walls have been improved.
So please be careful not to overdo
Insure your property according to the potential selling price, as you cannot ask for more than the cost of rebuilding the damaged property.
It is very important that, in addition to materials and construction, your insurance should consider the costs associated with rebuilding your beloved home.
These costs include cost of removal and professional fees-fees related to experts such as architects and surveyors.
The South Cape example raises other potential issues at the time of the claim.
A disaster like this, many people in the same location have lost their homes, putting pressure on building resources and the availability of contractors, which in turn can lead to higher costs.
Although you may think that you can rebuild your house at a price below the professional valuation, do not try to lower the building rate when you are insured for your property.
L esson 3: Keep your important information safe about what\'s in your home, and the cover is always calculated based on the replacement value.
To do this, you need to be able to prove that you have certain items and their value.
In the past, if your house was on fire, you were likely to lose what you needed to prove your content claim: receipts, item photos and valuation certificates.
Now, of course, technology offers us a choice.
One of them is to take photos or videos of your home content and its corresponding receipts and store them in the cloud-you can access them at any time.
Again, there are many free home inventory apps available.
It is also possible to consider saving all other valuable documents, such as identity documents, electronically.
Some people in South Cape Province had to flee without them and had to go through extra pressure to prove their identity in order to get the funds.
However, if you feel that you are not able to take the technical route, there is a more traditional option: Find a professional appraiser to do the job for you, or have your broker or insurance company prepare a list for you.
Even if you think your assets are protected from theft, they may not be able to survive the fire, so include them in stock (
For example, jewelry in your safe box).
Lesson 4: consult a broker, consult an insurance broker, and get the right advice about your house, responsibility and content, and the correct value of the insurance.
Your broker will help you understand what you need to perform your duties based on the wording of your policy, so that you can finally return to where you are before any loss.
But when people buy insurance, they tend not to think about the worst. case scenario.
That\'s why many properties are underinsured-people hedge their bets and want them to get away with a lower premium.
Sadly, some people in South Cape apparently don\'t think they have to deal with the worst --case situation.
But now that they have it, replacing the roof on their heads will prove challenging.
It is our job as a career insurance person to help people recover from their losses, and we realize that we can have a positive impact on the restoration of damaged communities, such as those in South Cape Province.
But just as it is our responsibility to have the policyholder correct, they also have a responsibility for us: to ensure that their insurance is correct and appropriate.
If you are not sure if your coverage is sufficient, talk to your broker or insurance company today.
If the worst happens, you will feel at ease now. ?
Arie de Reid is the intermediary market for claims and Delouise swamp is holard\'s close-fitting pants holard,
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