Page 59 - Bay Union - Prestige Policy Wording
P. 59

HOUSEHOLD CONTENTS
How much we pay
We will pay you out based on the replacement cost of any damaged or lost contents.
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  rst amount, or excess
You will always have to pay the  rst part of any claim settlement. This is known as the excess, and is listed in the excess 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.
Example
If you successfully claim R50 000 for contents stolen after a break-in, and the excess for that claim is R1 000, your net payout from us will be R49 000.
Example
If you successfully claim R50 000 for contents stolen after a break-in, and the excess for that claim is R1 000, your net payout 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 are stolen in a theft, we can pay out only half of R50 000 – or
R25 000.
Bay Union - Prestige Policy Wording - 20 June 2012 56


































































































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