Weakening Rand affecting your insured assest values

Make sure you are adequately covered, given the weakening rand

In 2015, the rand depreciated by 34% against the US dollar and is showing no sign of recovery yet. This has a significant impact on the cost of imported goods. Discovery insure pointed out to us in their approved advisor newsletter this morning ,of examples they found::

Household contents:

Item Cost Price in January 2016 Price increase
Samsung 660 litre side-by-side fridge/freezer R10 800 (in June 2014) R14 000 Almost 30% over 19 months

Portable possessions:

Item Cost Price in January 2016  Price increase
Citizen Eco-Drive dress watch R3 950 (in April 2015) R6 060 Over 50% over 9 months
Nikon D7100 Camera R10 400 (in October 2014) R19 900 Over 90% over 16 months

Given these circumstances, you may be underinsured if you have not recently updated your cover. Your renewal schedule would have implemented a small inflation increase but you need to ensure this is adequate cover in event of a claim.

Helping you avoid underinsurance by updating your cover

A reminder that your household contents needs to be insured for the total replacement value or average may apply at claims stage. For example, if the correct replacement value of your household contents is R600 000 and you have insured it for R300 000 and have a loss of R100 000, you will only be compensated for 50% (R300 000 / R600 000) of your loss (or R50 000).

To help, contact us and we can send you a simple asset inventory form, which can be completed. Some insurance policies do provide or can provide at a small fee ,an asset inventory to be completed at your premises.

You should also re-examine your portable possessions cover, specifically your specified items. Given the currency depreciation, it is highly likely that jewellery and watch items have become underinsured. We encourage you to update your valuation certificates and sums insured to prevent underinsurance.

If you have any questions, please call our offices and speak to our dedicated staff on

(011) 484 9401 from 08:00 to 17:00, Monday to Friday.