What Is Insured? Personal Lines Insurance
WHAT IS INSURED ON MY POLICY? – Personal Lines Insurance
So, this is a large topic to cover as it is dependent on your specific type of policy that is in place, which would then determine what cover you would experience. The past few weeks we have addressed what is insured on the community scheme insurance policy. Over the next few weeks, we are going to take a look at what is insured and how is it represented on the insurance policy schedule.
To start it is always wise to understand what are the insured perils that are covered on my policy. When we speak of insured perils, we are referring to the event that could cause loss or damage to your home, personal items, and business, for example fire, storm damage and lightning to name a few. Where do you find this? On a number of policies, it is reflected by the breakdown on the actual schedule that is presented to you as well as and in conjunction with the policy wording for the product for which you have insured. If you do not have this documentation this is the place to start, contact your insurance broker or insurer where direct for this information.
On most policy schedules you will note there is a page named/ labelled as the premium summary that is presented, this is a good place to get an overview of what type of cover is included on your specific policy schedule.
Below is a breakdown of what the Premium Summary looks like and what it reflects.
From the above picture, this is an example of the summary of sections insured and the amount(s) payable:
- Motor is the section that all vehicles or any transport with wheels are represented here. This includes caravans and trailers where applicable. On this section the premium amount if
R 388.63 per month.
- Household contents is the section where all the cover for your household items are represented. This includes all the items for each different room in your home ranging from your kitchen to bedrooms to your bathrooms etc. It is often an item that is forgotten or underinsured as this includes every item in your home that is not a fixture or specified somewhere else on the policy schedule. The premium amount payable here is R 125.00 per month. Most insurers have a minimum amount of household contents that can be applied even if your household content amount is less than that. This is often between the amount Of R 150 000.00 and R 200 000.00; it is dependent on the insurance company.
- All Risk items are specified items that have been represented, here is where you would find the cover for your laptop or cell phone etc. This is often where the extra ordinary items would also be reflected for example if you have a prosthetic or should you be a bike rider and need to insure your bicycle, it would also be the place where musical instruments may be insured. The premium payable here is R 141.05 per month.
- Personal liability cover that is represented here is normally an additional that the insurance company will add to your policy as part of the product that they put in place for you. This covers you for accidental death, bodily injury, or illness of another person, or for accidental loss or damage to property belonging to another person. Here the premium is an amount of R 17.15 per month.
- Special Risks cover is an add on that is put in place depending on the insurance company that the policy is with. In this case it is cover for an Emergency Home Assistance and Motor Assistance that you as the client has access to. The premium payable is amount R39.34 per month.
- SASRIA – This is the Special Risks Insurance Association which is unique cover against risks such as civil commotion, public disorder, strikes, riots and terrorism. This cover was engaged by properties that experienced damage in the July 2021 riots and is a standard on all policies.
- The total risk premium is the full premium amount payable, which here is R 716.19 per month.
- The total amount payable next deduction is what the total amount will be that will be debited from the bank account. The total here is R 716.19 per month. At times if items have been added or removed from the cover this figure could change it is just dependent on what changes have been made.
We hope that this has helped you in your understanding of the insurance policy in place in your personal lines cover.