To ensure that you are correctly insured for the current replacement value on your contents (on this section the insurer will pay new for old); we have attached an inventory form to assist you to calculate all your items to be insured under this section – all items in your home and outbuildings.
Should the current sum insured not be sufficient to replace all the items in your home that will mean that you will be underinsured and that average will apply when you submit a claim. Herewith is an example of how the average would be calculated.
Let us assume you are insured for R600 000, but the replacement value of your property is R1 200 000. This means you are only insured for half of the replacement value and you must cover the other half. For example, if you suffer damage to the value of R100 000, the insurer will only pay half of this amount, which is R50 000, which will be calculated as follows
By completing an inventory form, you will ensure that your possessions are fully covered at replacement value in the event of a loss; you will be able to replace your items with items of the same quality.
Use a pencil and write the replacement values in the column also include VAT and allow for inflation. Add all the totals per room to give you a grand total. This is the amount you should insure your contents for. You should update your inventory when you replace any item or buy more items. We advice you to keep all proofs, certificates, valuations, purchase invoices or inspection reports, as you may be required to prove ownership of items for which you claim.