MUA coverage
Be aware of insurance stipulations for storing items in safes
Submitted by Michaela on Wed, 2012-04-04 16:27Image/Video:
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MANY homeowners have begun installing safes in their homes in an effort to protect their valuable and irreplaceable items from theft, loss or damage.
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While this can be an excellent way to protect valuables, it is vital for home owners to read and fully understand all the terms and conditions in their insurance policies when using a safe, or they could find that a claim may be repudiated.
Looking at statistics from the South African Police Service Crime Report for 2010/2011, a total of 247630 burglaries and 16889 robberies were reported at residential premises, so it makes sense for most home owners to have a safe installed in their homes.
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Microdot law may result in reduced motor insurance premiums
Submitted by Michaela on Wed, 2012-04-04 16:25Image/Video:
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Amendments to the National Road Traffic Act that require all new vehicles registered in South Africa as of 1 September 2012 to incorporate Microdot technology is a hugely positive step towards the identification and recovery of stolen vehicles and could benefit consumers through reduced motor insurance premiums in the future.
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This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who welcomes this long-awaited and necessary legal stand against motor vehicle theft and the illegal spare parts trade in South Africa.
“The recovery of stolen vehicles is a huge problem in South Africa, with statistics from Business Against Crime South Africa (BACSA) revealing that an estimated 90000 cars to the value of R9 billion are stolen or high-jacked every year in South Africa and around only 43% of these cars being recovered.”
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Interview with Christelle Fourie and Sunday Times journalist Tina Weavind
Submitted by Michaela on Wed, 2012-04-04 16:23Image/Video:
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Don't slash and burn, trim expenses wisely
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Here's how to cut your costs without getting hurt
When payday is a speck on the horizon and your wallet is skinnier than the piece of polony you just ate, the last in the pack, you will probably conclude you need to slash your expenses or earn more money. It is expenditure rather than income that's most likely to get a makeover.
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Simple home maintenance tips may prevent insurance repudiations
Submitted by Michaela on Wed, 2012-04-04 16:19Image/Video:
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It is often said that home is where the heart is, yet most people unconsciously overlook important aspects of home maintenance without realising that this could have serious insurance repercussions.
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Homeowners who fail to maintain their homes properly may be exposing themselves to unnecessary risk of having an insurance claim rejected. Damage caused by unforeseen events such as fire or theft are typically covered under most homeowner insurance policies, however if the damage is caused by a lack of maintenance, the insurance claim may be declined.
It is critical that homeowners prioritise their expenditure towards their most important asset. In order to avoid potential insurance claim rejections, consumers should pay attention to the following key areas of the home:
- The Roof
- The Gutter
- The Fireplace
- Safety Equipment
- The Air Conditioner
- The Plumbing
- The Kitchen
- Windows and Doors
- The Garage
- Electrical Wiring
- Pumps
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IMPLICATIONS OF STORING VALUABLES IN SAFES - Secure tips for your clients’ precious items
Submitted by Michaela on Wed, 2012-04-04 15:32Image/Video:
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With a total of 247 630 burglaries and 16 889 robberies reported at residential premises, according to the South African Police Service Crime Report for 2010/2011, many homeowners have begun installing safes on their properties to protect their valuable and irreplaceable items from theft, loss or damage. While this can be an excellent way to protect valuables, it is also of the utmost importance that clients are reminded about the terms and conditions on their insurance policies when using a safe to avoid the risk of a claim being repudiated.
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With a total of 247 630 burglaries and 16 889 robberies reported at residential premises, according to the South African Police Service Crime Report for 2010/2011, many homeowners have begun installing safes on their properties to protect their valuable and irreplaceable items from theft, loss or damage. While this can be an excellent way to protect valuables, it is also of the utmost importance that clients are reminded about the terms and conditions on their insurance policies when using a safe to avoid the risk of a claim being repudiated.
Typically, cover for items stored in a residential safe fall under a standard home insurance policy. However, most policies stipulate that items over a certain value – for example, jewellery over the value of R50 000 – must be stored in a safe if it is not being worn or used by the insured at the time.
When it comes to storing cash in a safe, similar limitations apply. Policies may state that any cash over the value of R25 000 must be stored in a locked safe. It should be borne in mind that every insurer will have different stipulations and limitations so it is crucial to stress the importance of reading and understanding the terms and conditions of the insurance policy to the insured.
Most policies require that signs of forcible and or violent entry into the safe or removal of the safe from the house must be present in order for the claim to be paid out. Unless the policy holder was held at gunpoint and asked to open the safe, it must be clear that the contents of the safe were taken by force and the safe was not simply left unlocked.
It is imperative to inform your clients that when storing valuables in the safe that the contents and value of the items stored must be declared at the inception of the insurance policy. If the policyholder does not inform the insurer of the contents, the policy will not cover any loss or damage.
For example, if a homeowner takes out a home insurance policy to cover their home up to the value of R1 million but forgets to declare the additional contents of the safe worth R500 000, the homeowner will be underinsured by R500 000. Should the contents be stolen or damaged, any claim will then be subject to the average amount. It is therefore vital to inform your clients that when they are conducting their inventory for insurance purposes, that they include the items stored in their safe in the total sum insured.
Some policies may also require that a certain category of safe is used in order for the cover to be valid. The different categories of safes range from category one to four and are determined by the amount of time that is needed in order to open the safe.
Although MUA does not stipulate the type of safe to be used, it is advisable for your client to choose a reliable safe and bolt it down so that it impedes removal. When purchasing a safe, make sure it is fire resistant so that all irreplaceable documents, such as identification papers, birth certificates, wills and hard drives with family photos are not damaged in the event of a fire.
It is also important for clients to understand that when they are travelling the same rules apply for storage requirements of valuables as stipulated in their policies. Therefore if the policy requires that the items must be stored in a safe when not worn, they must adhere to this while on holiday by storing the items in the hotel safe to ensure the items will be covered in the event of a claim..
Another useful tip for your clients when travelling is to store a backup of all travellers’ cheques, copies of passports and other travel documents in a safe at home before departing on holiday. This will ensure that should these documents get stolen or damaged while on holiday they can ask a close family member to send copies of the documents to them to avoid any administration issues while abroad.
Studies have shown that during a break-in or robbery, burglars tend to head straight for the bedroom to locate any valuables and a safe, as this is the most common location for these items. Therefore, it is advisable to tell your client to install their safe in a place that is least expected, such as in a cellar, under wooden floor boards, in the bathroom or in the kitchen.
As with most insurance policies, when it comes to storing valuables in safes, the best advice to give your clients is to understand the requirements of their policy in order to ensure that when your client submits a claim the process runs smoothly.With a total of 247 630 burglaries and 16 889 robberies reported at residential premises, according to the South African Police Service Crime Report for 2010/2011, many homeowners have begun installing safes on their properties to protect their valuable and irreplaceable items from theft, loss or damage. While this can be an excellent way to protect valuables, it is also of the utmost importance that clients are reminded about the terms and conditions on their insurance policies when using a safe to avoid the risk of a claim being repudiated.
Typically, cover for items stored in a residential safe fall under a standard home insurance policy. However, most policies stipulate that items over a certain value – for example, jewellery over the value of R50 000 – must be stored in a safe if it is not being worn or used by the insured at the time.
When it comes to storing cash in a safe, similar limitations apply. Policies may state that any cash over the value of R25 000 must be stored in a locked safe. It should be borne in mind that every insurer will have different stipulations and limitations so it is crucial to stress the importance of reading and understanding the terms and conditions of the insurance policy to the insured.
Most policies require that signs of forcible and or violent entry into the safe or removal of the safe from the house must be present in order for the claim to be paid out. Unless the policy holder was held at gunpoint and asked to open the safe, it must be clear that the contents of the safe were taken by force and the safe was not simply left unlocked.
It is imperative to inform your clients that when storing valuables in the safe that the contents and value of the items stored must be declared at the inception of the insurance policy. If the policyholder does not inform the insurer of the contents, the policy will not cover any loss or damage.
For example, if a homeowner takes out a home insurance policy to cover their home up to the value of R1 million but forgets to declare the additional contents of the safe worth R500 000, the homeowner will be underinsured by R500 000. Should the contents be stolen or damaged, any claim will then be subject to the average amount. It is therefore vital to inform your clients that when they are conducting their inventory for insurance purposes, that they include the items stored in their safe in the total sum insured.
Some policies may also require that a certain category of safe is used in order for the cover to be valid. The different categories of safes range from category one to four and are determined by the amount of time that is needed in order to open the safe.
Although MUA does not stipulate the type of safe to be used, it is advisable for your client to choose a reliable safe and bolt it down so that it impedes removal. When purchasing a safe, make sure it is fire resistant so that all irreplaceable documents, such as identification papers, birth certificates, wills and hard drives with family photos are not damaged in the event of a fire.
It is also important for clients to understand that when they are travelling the same rules apply for storage requirements of valuables as stipulated in their policies. Therefore if the policy requires that the items must be stored in a safe when not worn, they must adhere to this while on holiday by storing the items in the hotel safe to ensure the items will be covered in the event of a claim..
Another useful tip for your clients when travelling is to store a backup of all travellers’ cheques, copies of passports and other travel documents in a safe at home before departing on holiday. This will ensure that should these documents get stolen or damaged while on holiday they can ask a close family member to send copies of the documents to them to avoid any administration issues while abroad.
Studies have shown that during a break-in or robbery, burglars tend to head straight for the bedroom to locate any valuables and a safe, as this is the most common location for these items. Therefore, it is advisable to tell your client to install their safe in a place that is least expected, such as in a cellar, under wooden floor boards, in the bathroom or in the kitchen.
As with most insurance policies, when it comes to storing valuables in safes, the best advice to give your clients is to understand the requirements of their policy in order to ensure that when your client submits a claim the process runs smoothly.
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- 99 reads
AARTO may hurt your car insurance
Submitted by Michaela on Tue, 2012-03-13 13:39Image/Video:
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When new traffic control system AARTO is introduced on 1 April 2012, it may have a major impact on the car insurance of a motorist if he or she accumulates too many points.
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Christelle Fourie MD of MUA Insurance Acceptances spoke to Businesslive about the connection and gave some advice to motorists. Interview, recording and editing by Michael Bratt.
Listen to the radio interview by clicking on the link below:
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How To Avoid Underinsuring Your Jewellery
Submitted by Michaela on Tue, 2012-03-13 13:37Image/Video:
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With the price of gold having more than doubled over the last five years, many consumers may be unaware that this may have had a significant impact on the value of their jewellery when insuring it against theft, loss or damage.
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This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptance, who says it is imperative that all consumers perform regular valuations of high value items such as jewellery to avoid underinsurance.
"If the insured value of the item is not increased to its current value, then not only will the jewellery owner be underinsured but some insurance companies may also impose penalties for invalid valuations.
"For example, if a consumer purchased a diamond ring in 2007 valued at R65,000, the current replacement cost of the ring could be as much as R120,000 due to fluctuations in the price of gold and other precious metals, so it must therefore be insured for this higher amount in the event of a claim."
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Avoidable Property Mistakes
Submitted by Michaela on Tue, 2012-03-13 13:32Image/Video:
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Property usually involves spending a whole lot more than we're used to. It's also a long-term investment - perhaps extremely long term is more appropriate right now if you're hoping for any real growth from your initial outlay. With property prices increasing at the pace of a deeply depressed snail, you'll want to avoid doing anything that might erode any hard-won value you've achieved.
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House prices might be flat right now but, according to Rael Levitt, CEO of Auction Alliance, interest rates have dropped to lows last seen in 1974, and there is a chance they could drop further. So if you've got the means, now is probably the time to buy property. Here are a few suggestions on deciding whether to take the leap and, if you do, how to get the best out of your investment.
Kevin Mountjoy, Gauteng regional sales manager at bond originator ooba, says it's vital that you shop around for a bond before you decide who to go with. All banks have different strategies, depending on where they need exposure, and this influences the rates they offer their clients. If the bank wants to increase its exposure to middle-income people in KwaZulu-Natal, it might offer preferential rates when such clients come calling.
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Vehicle insurance excesses
Submitted by Michaela on Tue, 2012-03-13 13:30Image/Video:
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Your chances of being involved in a vehicle accident are about one in 10 every year, and insured drivers virtually always have to pay an amount upfront via the excess on their policy.
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Last year, the South African police recorded about a million vehicle accidents, which are estimated to have involved as many as 1.8 million cars.
“If you take into account that there are 9.5 million licensed cars and even more unlicensed cars on South African roads, your chances of being involved in an accident are at least one in 10 each year,” Gary Ronald, a spokesman for Arrive Alive, says.
If you are in an accident or your car is stolen and you need to claim on your car insurance, you need to be aware of the terms and conditions around the excess amount you are liable for.
Sometimes it is only when they come to claim that first-time policyholders realise they have to pay an excess, Gari Dombo, the managing director of Alexander Forbes Insurance, says.
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New law places legal liability on homeowners for pool accidents
Submitted by Michaela on Tue, 2012-03-13 13:22Image/Video:
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Homeowners can face criminal charges of fines or imprisonment.
With Summer having arrived, many homeowners will only now begin to consider the use of their swimming pool again. However, it is essential that consumers make sure they are aware of the legal and insurance implications of owning a swimming pool as new legislation will place even more onus on the owner.
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This is according to Marike Stals, Legal and Compliance Manager at MUA Insurance Acceptances, who says homeowners should be aware that there are two types of cover under building insurance policies. “The first covers the actual damage of the structure, while the second is legal liability cover, where the homeowner protects themselves legally against something happening to guests, trespassers and / or their tangible property on the insured property.”
“Currently, the owner of the pool is held accountable under South African Law of Delict in the event of a drowning incident. South Africa’s civil liability laws mean a civil claim can be charged against a pool owner for any damage suffered as a result of drowning, whether fatal or not.”
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