The Ultimate Guide to Understanding Home Contents Insurance Claims

When's the best time to address the questions you have about your Home Contents Insurance? Ideally, you should have your concerns answered before you even request a Household Contents Insurance quote. This is a reliable way to ensure you aren't faced with surprises or financial loss.

Not sure what questions to ask? Here's everything you need to understand about claims and how Home Contents Insurance from Auto&General Insurance can cover almost every eventuality.

The 3 most common Home Contents Insurance claims

When it comes to Household Contents Insurance, South Africa is a unique environment that impacts what people tend to claim for. Here are five common claims South Africans make:

1. Theft or burglary

According to StatsSA, South Africans reported an estimated 1.5 million house break-ins from 2023 to 2024. There are dozens of associated costs that come with experiencing a break-in that you may not have considered that will need coverage.. It's important to know what an insurer will and won't cover after a break-in and what limitations or exclusions may apply before you claim.

Consider the following scenario: Lisa and her family leave their home in Johannesburg and go away for a short break to Durban. Upon returning, they discover that someone has broken into their home by breaking the entrance door and stealing some valuables. While Lisa is upset, she has picked her insurance coverage carefully. She immediately notifies her insurer, who dispatches a security team to guard her home while the new door is installed.  In addition, insurance covers the cost for Lisa and her family to spend a few nights in a hotel and return home a few days later to a secure property. 

2. Fire and water damage

Fire and water damage can be scary to deal with. 

For many South Africans, water damage can bring to mind unpleasant experiences involving flooding after heavy rains or due to a burst pipe in the home. Heavy rains can also come with violent hail, which can create other forms of damage, including damage to outdoor furniture and structures.

Home fires can occur for several reasons, like a malfunctioning appliance. Having Home Contents Insurance is critical. While many people take out Building Insurance, this will only cover the damage to the building itself and not anything stored inside your home. To replace everything from curtains and bedding to appliances and furniture, you'll need Home Contents Insurance.

3. Power surge damage

Many of us have to deal with frequent power outages and surges, an unpleasant and unpredictable reality. As we all know, this can happen without warning and continue for longer than communicated. This means no time to unplug your appliances to protect them from surges or find somewhere to store all that fresh food in your fridge. Thankfully, Home Contents Insurance allows you to claim for appliances and equipment damaged during power surges, as well as the cost of replacing spoiled food, up to a predetermined amount.

Understanding the Home Contents Insurance claim process

Now that you know a bit more about what Home Contents Insurance will cover, you should get familiar with its claim process so that if you ever need to make one, the process goes as quickly and effortlessly as possible.

Key Home Contents Insurance claim steps

• Be prepared — Have your paperwork up to date and readily accessible. This should include your policy paperwork as well as a list of insured items with their receipts, or copies thereof, and current market value. Having a digital copy of this is advisable, in case you can't access hard copies.

• Document the damage — Take clear images and video footage to corroborate the event and the damage your home has incurred. A police report will be required for an incident of theft, robbery or burglary. 

• Don’t delay  —  The sooner you file the insurance claim, the better. If you delay the claim by too long, it may be rejected as a ‘stale claim.’

• Submit the claim — Include as much detail as possible. For example, if you have items that need repair and replacement, include up-to-date repair quotes and the retail prices for items that need to be replaced. The insurer might require a claims adjustor to investigate and verify the claim. Once this has been completed and your claim is accepted, you can expect a payout for the lost items or you will be directed to an authorised service provider for repairs. 

Top tips for a successful Home Contents Insurance claim

Want to make your claim process as simple as possible? Then follow these suggestions.

• Create an inventory ahead of time — To ensure your insurance covers what it needs to cover, create an inventory.

• Know item value — Generally, insurance covers household items for their equivalent replacement. This means a direct replica of the item in question or one that performs similar functions. This is important to understand as you may own an item that's been discontinued. In this case, it helps to know the next best thing would be, keeping in mind that you can't necessarily upgrade to a costlier model.

• Understand your policy — Make a habit of reviewing your policy regularly to see if it still fits your needs. This will prevent you from accidentally over or under-insuring yourself. It will also help you detect shortfalls or areas of concern that an advisor can assist with. For example, a recent marriage may require a combination of assets or coverage.

Get a Household Contents Insurance quote

It's worth the effort to understand what Home Contents Insurance covers and the best way to prepare for a claim. Next, choose an insurer who can match your expectations and walk you through to process, from quotation to claim. Auto & General Insurance can do this, so contact us for a Household Insurance quote today to get started.

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Sources:

1 StatsSA: Over 1.5 million reported house break-ins in 2023/24: StatsSA

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.