2022 – THE INSURANCE YEAR IN REVIEW.
As 2022 reaches its end, we’re here to remind you of some of the most valuable insights and facts that we’ve shared about the insurance industry over the past twelve months.
We’ll be doing this by focussing our latest blog on the most vital sections of information from our top articles, to ensure that you’re excellently clued-up on a range of key insurance concepts before the new year arrives. Why? Well, a new year means another 365 days of unexpected risks. As “Murphy” would have it – mishaps and misfortunes are inevitable.
The more informed you are when it comes to insurance, the greater chance you have of minimising your risk and exposure. So, without further ado, here is our 2022 insurance year in review.
CAR INSURANCE; HOW TO GET THE BEST DEAL POSSIBLE.
Here’s the 101 on Car Insurance:
- There are three primary types of car insurance policies that are available to you: Comprehensive, Third Party, Fire & Theft, and Third Party only.
- Certain factors impact the price of your car insurance policy. These include your age, the age of your car, when your last accident was, and where your car is usually parked.
- Do not forget about “excess” amounts that might apply in the event of theft, loss or damage to your car. Lower premiums typically come with higher excess, which you will be required to pay the insurer before any payout is made in the event of a claim.
- Annual adjustments will apply. It’s therefore worth touching base with your insurer when your renewal is due. Why? There’s a high probability that your circumstance may have changed in the past year, which could require that you apply for better cover. Additionally, your car’s retail value will also need to be adjusted to keep your premium accurate.
- Always remember to get the most appropriate amount of cover for your personal needs and never forget to read the fine print of your car insurance contract!
- Insurance brokers are here to help and guide you – an experienced insurance broker will help you navigate each policy and ensure that you’re adequately informed and sufficiently insured.
HOUSEHOLD CONTENTS COVER IS CRUCIAL; THINK “KZN FLOODS”.
Following the devastating flooding which occurred in KwaZulu Natal last year, SAIA predicted that flood-related claims in 2022 will exceed R1 billion, with insurers seeing a significant increase in the number of households applying for Household Contents cover.
Beyond the risk of Mother Nature’s rage, there are a number of other (more common) dangers that pose a threat to your belongings.
These involve claims relating to:
- Theft and Burglary,
- Fire damage,
- Water tank, geyser, apparatus and burst-pipe claims,
- Special perils (defined as storm or hail claims),
- Lightning or thunderbolt damage, and
- Power surges (which have caused a 30% increase in claims).
LIFE INSURANCE – WHY YOUR WILL MATTERS.
According to Business Day, over 70% of South Africans are without a Will. This has the potential to create significant frustration and confusion for your loved ones in the event of your death, owing to the complexity that is often synonymous with settling one’s deceased estate.
Why is a Will imperative?
- If you are the sole provider for your family, a Will and Life Insurance Policy ensures that your family can care for themselves with the financial support that your policy will afford them.
- As a parent, a Will affords you the confidence in knowing that your children will be supported once you have gone.
Should you die without a Will, specifically as a parent, your child’s inheritance will be paid into the government’s Guardian Fund which necessitates a lengthy administrative process (and often a challenging one) for your children to go through before any funds can be accessed.
SURGE PROTECTION AND LOAD SHEDDING COVER; A SOUTH AFRICAN MUST-HAVE.
Eskom’s power outages are expected to continue until at least 2024. As a home and business owner, it is absolutely crucial to be conscious of damages that can result to electrical appliances, machines and assets that result from power surges during load-shedding.
When power is restored after load-shedding or substation faults, there is a high risk of a destructive power surge transpiring. These have the potential to cause serious damage to unprotected electrical appliances that are plugged into your property’s main electrical system at the time.
Household insurance typically offers some form of power surge cover. However, if you have expensive electronic items that fall outside of the maximum value limit of your policy, these items will not be covered by your insurance. As such, it is vital to confirm with your insurer which items in your home are covered and whether a power surge benefit is included in your policy.
As always, we encourage you to get in touch with our expert team of Brokers, who are here to assist you with any insurance-related challenges or queries that you might have as you prepare for the start of an exciting new year.
