Page 49 - Hollard Private Portfolio - Version 3.5

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Hollard Private Portfolio – Version 3.5 – 7 May 2024
Household contents
Collectables This means any item that is regarded as being of value or interest to a collector, for
example firearms, stamps, coins and medal collections. We will pay up to the value set
out in a recognised catalogue or pricelist as at the date of the loss or damage, or as
determined by an independent specialist.
How much we pay
We will pay out based on the replacement cost of any damaged or lost contents. If it is uneconomical to repair, the pay-
out will be based on the replacement cost of the damaged property.
Example
If your claim is for an item of furniture that costs R10 000 to replace, we will pay R10 000 so that you can buy a new
one – even if the item in question is old and worth a lot less.
Pairs and sets
We will not pay more than the proportionate value of any article that is part of a pair or set. So if you lose one earring,
for example, we will pay out the value of only that one earring.
You always pay the first amount, or excess
You will always have to pay the first part of any claim settlement. This is known as the excess, and is listed in your policy
schedule.
Example
If you successfully claim R50 000 for contents stolen after a break-in, and the excess for that claim is R1 000, the net
pay-out from us will be R49 000.
What if you are under-insured?
If you have insured your contents for less than their replacement value – i.e. you are under-insured – then you will have
to bear a proportion of any loss in the event of a claim. In calculating this, we will apply the principle of average.
Example
Your household contents are insured with us for R200 000, but the cost to replace all the items is R400 000.
This means you are under-insured by half (or 50%). Put another way, you are only ever insured for half of any claim
you make.
So if R50 000 worth of your contents is stolen in a theft, we can pay out only half of R50 000, in other words R25 000.
The pay-out is calculated as follows:
Replacement value R400 000
Sum insured R200 000
Contents stolen R50 000
Under-insurance calculation:
R200 000 R50 000
R400 000 X 1 = R25 000 (less any excess applicable)