Buildings Insurance in South Africa

The property should always be insured at the current re-building rates.  It is important to ensure that you have insured your building for the total rebuilding costs.  If you have under insured yourself this will result in Average being applied to your policy.  The Average Clause reasons that if you have under insured yourself, you have taken a portion of the risk on for yourself and have "self-insured" it.  Thus at claims stage you will only be paid out a rateable portion of the claim.

The sum insured must also include further expenses that might be incurred, such as the costs for the fire brigade, rubble removal, architect fees, municipality charges etc.  A professional valuator should be used to adequately valuate the property as you do not want to be under insured in the event of a claim.

Some insurance companies send out an independent valuator to ensure that you are correctly insured.  Incompass Insurance Services can help you make the most of your insurer.  If you would like to make use of this please click here.