No need for a title deed to purchase home contents insurance

By:Athenkosi Sawutana

Home contents insurance is usually marketed to people who own houses, which gives the impression that the insurance is only for those with title deeds. But what if you’re renting, or living at your parents’ house, and you have valuable items you want to insure?

“If you don’t own the house you live in, you can, and should, insure your contents under home contents insurance,” says Wynand van Vuuren, spokesperson for King Price.

Van Vuuren says if you’re a tenant, your landlord isn’t liable for the loss of, or damage to, your possessions at the house – you are.

If you have personal belongings that you would like to cover, you can ask your insurer for the options it offers, or shop around and compare it with other insurers, says Vera Nagtegaal, executive head at Hippo.co.za.

In certain instances, you can specify standalone items and their value if an insurance provider has this option.

What type of items are covered by home contents?

“If it was possible to turn your house upside down, everything that fell out would be covered by home contents insurance,” says Van Vuuren.

He says you can cover anything from TVs and tablets to watches and jewellery, or from shoes and sheets to a collection of your old CDs.

Van Vuuren says it’s important to cover your home contents for their current replacement value.

He says that when you purchase content insurance, it is important to always bear the following in mind:

• Home contents insurance covers items while they’re on your property. Items that you take with you when you leave the property, like your cellphone, laptop, tablet, designer handbag, gym bag, jewellery, and watches, must be insured separately as portable possessions.
• Always update your insured value when you get new, high-value items.

• It’s the current replacement value of your home contents, and not what you have paid for the items, that determines the insured value.
• It’s critical that you don’t underinsure. You can’t only insure just half of your home contents and exclude the other half. If you do this, your insurer will pay out any claim proportionately.
• Apart from an up-to-date inventory of your home contents, you should also keep proof of purchase and valuation certificates for high-value items and jewellery. It is also important to keep these off-site or in a fire-proof safe.

Marius Neethling, a personal lines underwriting manager at Santam, also urges you to read the terms and conditions of your policy, and understand the extent to which your house contents are covered.

He says insurers sometimes request that you install an alarm system, and it is your responsibility to ensure that the alarm is working.

“Always be honest and open with your insurer. Ask questions if you don’t understand, and ask for second opinions, or comparative quotes, to make sure your assets are protected and that you get the best value,” says Neethling.

The biggest advantage of having home contents is that you don’t bear any risk for the loss of, or damage to your home contents – as long as you pay your insurance premium monthly.