Page 29 - Hollard - Private Portfolio Policy Wording

Buildings
Paying out a er a claim
How much we pay
We pay out based on the replacement cost of the part of your building that is damaged.
Bank may be paid out before you
The nancial ins tu on nancing your premises always has rst claim on any pay-out to you, if this is the only way to se le any outstanding debt you s ll owe them.
This means that if you are nancing your premises with a bank or authorised credit provider, be aware of the fact that they are en tled to use your insurance pay-out to se le any money that you s ll owe them.
In the event of your claim being rejected for breach of the terms and condi ons of the policy, we will s ll pay the nancial ins tu on up to the amount owing to them in order to protect their interests.
This is subject to the following condi ons:
○ the nancial ins tu on was not aware of the fact that you were in breach of the policy
○ the claim was not fraudulent in any respect or you caused the loss or damage yourself.
What if you are under-insured?
If you have insured your buildings for less than its actual value – i.e. you are under-insured – then you will have to bear a propor on of any loss in the event of a claim. In calcula ng this, we will use the principle of average.
Example
If your claim is for a new wall that costs R10 000 to replace, we will pay you R10 000 so that you can have a new one built – even if the damaged wall is old and worth a lot less.
Example
Your buildings are insured with us for R200 000, but the cost to replace it 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 your building is damaged in a storm and it cost R50 000 to repair, we can pay out only half of R50 000 – or R25 000.
The pay-out is calculated as follows:
Replacement value Sum insured Storm damage
Under-insurance calcula on:
R200 000 R50 000 R400 000 X 1
R400 000 R200 000 R50 000
= R25 000
Hollard Private Por olio 27