Page 48 - Hollard Private Portfolio - Version 3.4

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.
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.
What if you are under-insured?
If you have insured your contents for less than its 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.
Household contents
Subsidence, landslip or ground heave
Collectables
How much we pay
Refers to the movement of the land that supports the home.
Subsidence means sinking, for example the vertical, downward movement of the soil.
Landslip means the sliding down of a mass of land. It is in effect a small landslide and it typically occurs on a slope.
Ground heave means the upward movement of soil supporting the home.
Collectables mean 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.
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.
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.
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 – or R25 000.
The pay-out is calculated as follows:
Replacement value Sum insured Contents stolen
Under-insurance calculation:
R200 000 R50 000
R400 000 X 1 =
R400 000 R200 000 R50 000
R25 000 (less any excess applicable)
46 Hollard Private Portfolio – Version 3.4 – 17 Aug 2023