Festive season tip: Update your insurance policies and Wills

Noticeable upsurge in motor vehicle accidents and home burglaries over the festive period, as well as claims around wrongly packaged goods by businesses.

Cape Town - Experts have cautioned the public to make sure their life insurance policies and Wills are up to date before the “silly season”.

The insurance industry said its claim data showed a trend of noticeable upsurge in motor vehicle accidents and home burglaries over the festive period, as well as claims around wrongly packaged goods by businesses.

Karen Rimmer, distribution head at PSG Insure, advised consumers to put “safety first” during the holiday period by reviewing their insurance policies and doing their due diligence.

“In our experience, we know that opportunistic criminals are particularly active during the festive period, especially given that many South Africans leave their homes to go on vacation. The increased level of reported crime during this time of year therefore represents a substantial risk.

“Best practice is to develop the habit of reviewing your insurance policies annually to incorporate any assets that may have been acquired during the year or to account for any renovations or home improvements. As part of this ‘annual audit,’ one should make sure that your home is insured for the replacement value of the property rather than the market value.

This will ensure that in the event of the complete destruction of a property by natural disaster, for example, the homeowner is covered for the cost of replacing the entire structure,” said Rimmer.

FNB Fiduciary chief executive, Aneesa Razack, said a Will was a crucial element in financial affairs.

"In the event of your passing, your wishes about the distribution of your assets are expressed in a Will, a legal document. Your wishes may change as your life evolves, and you need to be sure that your Will reflects such changes. For instance, you might have gotten married, bought a house, or just want to make sure that your family member takes care of your favourite pet; all these things can be specified in a Will."

She advised reviewing your Will, maintaining an up-to-date inventory of your assets and making sure important documents are kept safe.

Cape Times