73 Ocean Street, New South Wales 2000, SYDNEY

Contact Person: Callum S Ansell
P: (02) 8252 5319


22 Guild Street, NW8 2UP,

Contact Person: Matilda O Dunn
P: 070 8652 7276


Genslerstraße 9, Berlin Schöneberg 10829, BERLIN

Contact Person: Thorsten S Kohl
P: 030 62 91 92

Saving you time… Saving you money… reducing your risk!

Introducing the Legacy average risk cover offer for Santam clients.


  1. Background.

Santam together with Legacy offer a reduced premium to all Legacy / Santam policyholders. This cover extension offers 3 different value bundles under the Contents and Buildings sections respectively and will be offered at most competitive rates.

This offer is available from 01 November 2018 until 31 January 2019.

Cover added during this period will remain on the policy, until you the policyholder decides to remove it.

Legacy Underwriting Managers would like to encourage all clients to add this valuable extension to your policy in order to limit the risk of average being applied on Contents and Building sections at time of a claim.


  1. What is average.

If, according to the Insurer’s calculations, the amount needed to replace/repair all of your insured property with similar new property at the time of any loss or damage, is more than the insured amount, the insurer will not pay you the full amount of the loss or damage. You as policy holder will be responsible for a proportional share of the loss or damage and will therefor effectively be your own insurer for the difference.


You are insured for R500 000, but the replacement value of your property is R1 000 000. This means you are only insured for half of the replacement value. Therefor you must cover the other half.

If you suffers damage to the value of R100 000, the insurer will only pay R50 000 of this amount.

If you as the client have selected this Valuable Average Risk cover, Santam will not apply average on the first claim that happens within the first 12 months after this cover has been added to your policy.

After the 12 months this cover will continue on the policy, but you will not qualify for the average waiver. Meaning that you as policy holder will still have more cover at a lower premium.


  1. How it works.
  • The cover is available in respect of all insured Contents and/or Buildings (thus also 2nd, 3rd, etc. risk addresses)
  • The cover can be removed at any time
  • The rates for this cover will remain unchanged for 12 months or until the 1st claim in 12 months,

where after it will be adjusted to the normal section rates.

  • Annual inflationary adjustments will not be calculated on these insured values
  • Any claim on an item where this extension is selected, will be registered on the main risk and the

insured value of the Additional cover added to the sum insured of the main risk

  • Depending on the sum insured of the underlying cover, you can select a layer above, but within

the rules as indicated below.

  • This additional cover extension will not be available in respect of new business (clients) which

incepts after 01 September 2018 and later

  • The existing sum insured may NOT be decreased to be replaced with an Average risk cover band
  • The Average risk cover option will be on top of existing cover
  • Only one option can be selected per risk


  1. Cover options and rules.

Contents Extension – Average Risk Cover

Sum Insured < R500 000 – Cover option R100 000 – Premium R30.00

Sum Insured from R500 001 to R750 000 – Cover option R150 000 – Premium R35.00

Sum Insured > R750 000 – Cover option R200 000 – Premium R45.00

Buildings Extension – Average Risk Cover

Sum Insured < R750 000 – Cover option R100 000 – Premium R20.00

Sum Insured between R750 001 to R1 000 000 – Cover option R200 000 – Premium R25.00

Sum Insured > R1 000 000 – Cover option R300 000 – Premium R30.00


Article by Marthie Janse Van Rensburg.

Contact us for more.

Post a comment

Live help is online...