Hi i’ve heard a number of stories about assessors valueing certain items in one’s household contents by using a formula. e.g. for clothing they decide on your most common label like Edgars and then they value R100 per item multiplied by the number of hangers in one’s cubboard. This doesn’t sound logical. Once I have a long list of every item in my house, how do i know that i’ve attached the right value to them? another example is the tv unit that i made myself. The materials cost me about R1000 but what would an assessor value it at? do i submit my list of items to you or do i use it as a guide to give you a final number. My concern is if i claim, will an assessor have another opinion on my valuation and will I be left short paid. Your advice will be much appreciated. thanks. P.s. i have a garden shed in my couryard in my complex. it has my garden tools, golf clubs and some power tools in it – all locked with a padlock. Will this be insured?
All the contents of your home must be insured for its current replacement value, which means that you are covered for new for old. If you submit a list of items with a value the assessor will still determine the replacement value based on current prices. Should you not be insured correctly, thus if you are under-insured, average can be applied, which is the only formula that is applied when calculating the settlement for a contents claims. For example, if the replacement value of your home should have been R200 000 and you chose to only insure it for R100 000 you will only be paid out 50% of your total claim as you chose to only insure the contents for 50% of its actual replacement value. There are no set formulas/rules when it comes to valuing individual items. The value of the items being claimed for will be determined based on the make & model or brand that the client is claiming for. In the case of clothing the MiWay assessors do distinguish between “normal” clothing and branded clothing, like Jeep, Nike, etc. If an item is home-made we will look to replace with a similar unit.
The contents of the garden shed would normally be covered if we accept the contents risk providing the garden shed has the same security as the rest of the building on the property.
MiWay’s Home Insurance products include Home Contents Insurance, structural Buildings Insurance and All Risk Insurance for your movable bits.
Visit our Home Insurance page to find out more about our insurance products that cover you in and around your home.
