Just as I thought, when I start blogging, inspiration seems to flow naturally. Yesterday I blogged about excess payment because a friend of mine was recently involved in an accident. (read it here). The same article triggered me to go look at my house cover contract. You will be surprised at what is in the document you have signed.

After looking at it, I shared the link with my friend to read and to be surprised she actually is in the process of getting her insurance contract revised. She also have a house cover that she took for a house she bought and  now just got a broker to review it. Here was the shocking reality  from that review:

Quote from the email sent to her by her new broker:

I wanted to just advise on the  2 items I noticed on the policy

  • Your policy states that there is someone at home during working hours, I advise we amend to unoccupied during working hours to ensure that should there not be someone for a set time it doesn’t affect your theft claim. There is no difference in premium
  • You have theft cover just by having the burglar bars. It’s advisable not to mention the alarm and not have it stated on the policy just in case you step out quickly forgetting to activate it. If it’s not stated and you step out and they break in you still have cover because the burglar bars are intact. However if its stated and you forget to activate it, you do not have cover even if the bars are intact.
    There is no difference in premium by stating that you have an alarm. I would thus advise we not mention the alarm.

These are small things but could be the reason why your claim is repudiated just because you just stepped out quickly or it’s just that one day when there was no one at home.

I compared hers to mine and luckily mine says no at all the places where hers “yes”. Imagine not getting a payout only to learn that your contract states that there is someone at home during working hours.

In addition, one thing I noted was that it states that her  boundary wall is 1.8 meter high. Is that is even true? it could not be but it affects your claim.

Not to scare you but invest in some financial literacy so that you can begin to understand some of these things that you sign.



3 thoughts on “Insurance contracts: Are you aware?

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