In tough economic conditions it is more important than ever for consumers and businesses to ensure that their assets are adequately protected against rising replacement costs and to adjust their insured values in accordance with inflation in order to safeguard themselves from financial loss.
Select the Inflation increase option to make sure that you are covered adequately in the unfortunate event of a loss!
Q: What is the Inflation increase option on your short-term policy?
A: Upon renewal your non-motor section is adjusted with -+10% inflation increase in value. Your sum insured is automatically increased by -+ 10%
Q: Why would you select this Inflation increase option?
A: In the event of an unfortunate loss, you need to be sufficiently insured to cover your loss.
Q: Benefits for selecting the Inflation increase option?
A: * Increased value and cover
* Limiting under-insurance
It is essential that assets should be insured at their correct inflation-adjusted values
Inflationary increases on sums insured, such as a home, its contents and all risk. “The cover for these belongings is heavily influenced by inflation and the reason why insurers have to increase the sum insured (the value of the cover) is that these items will cost more to replace or repair a year later due to inflation.”
It’s good practice to reassess your insurance policy at least once a year. This involves evaluating the inventory list of their insured items and the estimated replacement value of each individual item.
If you select the automated inflation adjustment option on your policy whether personal lines or commercial, then your policy will automatically be adjusted with inflation upon renewal without any intervention and you will have increase cover.
Article by Anel Van Schalkwyk.