Can I save by removing the theft component from the home and household insurance policy?

The best way to save on expensive insurance premiums is to gain a better understanding of your insurance. To make informed decisions we need information to base our decisions on – as simple as that! The same applies to those decisions we make when purchasing our home and household insurance.

Do you know what part of your insurance premium goes towards cover for which potential threat of loss or damage? The percentage of premium going towards theft and household cover varies – overall however the % forms a significant part of the overall premium calculation!

How much cover do we need?

Insurance is all about choices – and there should be a wide range of options on the menu. If you are on a diet, you do not need to order fries with your steak – you might decide to rather have the vegetables. If you are on a financial or insurance diet, and in need of saving – you may decide not purchase cover for every possible or remote peril!

When might it not be necessary to have theft cover in your home and household insurance policy?

Some of my more fortunate friends live on golf estates and the so-called gated communities where there is a strong focus on security. Security measures include the following:

  • The whole complex or estate is fenced with walls and layers of electric fencing.
  • Entrance is possible only through once central and heavily guarded entrance.
  • Residents are fingerprint scanned and allowed entry through fingerprint scanners and boom gates.
  • Visitors only gain entrance after confirmation from and between the estate security and residents.
  • Domestic and other workers are fingerprint scanned and their criminal records checked and cleared before allowing them to work within the estate.
  • Residents benefit from private armed response services as well as estate security services.
  • Premises are patrolled with both security vehicles and golf carts.
  • Individual homes have alarm systems installed, burglar proofed and even have intruderprufe laminated safety glass.
  • Some might even have their own guard dogs as well….

These homeowners might agree that they are much less likely to have possessions stolen or their homes burgled. They might well consider saving on their home and household insurance by removing the theft component – the most expensive part of any home and household insurance policy!

Insurance policy should be tailored to YOUR needs!

It should be kept in mind that our needs differ from person to person. If you are not as fortunate and are living in an area where there is much more crime and less security, you will be ill-advised not to be insured against theft. We would like to advise that you analyze your personal needs and circumstances and then communicate with your insurer.

Ask your insurer the following:

–          Is it possible to be insured with and without the theft component in your home and household insurance policy?

–          What would the premium be with or without insurance against theft?

Once theft cover is removed – what protection would still remain?

Even without theft cover there should still be protection from numerous other perils. Trevor Devitt from OUTsurance confirmed that cover might still need to protect from:

Acts of nature (flood storm, wind, hail and snow), fire, lightning and explosion, burst geysers and leaking pipes, power surges and dips, impact by vehicles and aircraft (including articles dropped from aircraft), accidental breakage to TV sets, mirrors and glass forming part of any furniture. …So the list of what is covered still includes a wide range of perils that can cause loss or damage to Contents!

Conclusion

Insurance should never be a once size fits all. We would like to advise that homeowners regularly review their circumstances and align them with their financial needs. Scrutinize your insurance policy, ask questions and communicate with your insurer or insurance assessor to ensure that you are effectively covered!!

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