Page 20 - Hollard Namibia – Motor & Household Policy Wording

Key terms to understand
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How much we pay
Includes yourself, your spouse and any members of your immediate family who normally reside with you, and are financially dependent on you
The house and outbuildings situated at the risk address stated in the SCHEDULE and used for domestic purposes
Means that all structures have been built with:
o walls of brick, stone or concrete, and
o roofs of slate, tile, concrete, asbestos or metal
Household contents
We will pay you out based on the replacement cost of damaged or stolen contents up to the sum insured stated in the SCHEDULE.
How we pay
If we cannot repair the item, we can decide to replace it for you. Alternatively, we may give you the money and you can repair or purchase a new one yourself.
Pairs and sets
We will not pay more than the proportionate value of any article that is part of a pair or set. We do not cover the special value which any article may have as part of a set.
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 stated in the SCHEDULE.
What if you are under-insured?
If you have insured your contents for less than its replacement value then you are under-insured and 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 your claim is for an item of furniture that costs N$10 000 to replace, we will pay you N$10 000 less the excess so that you can buy a new one – even if the item you are claiming for is old and worth a lot less.
Example
If a painting, which forms part of a set, is lost or damaged, we will pay out the value of only that one painting.
Example
If you successfully claim N$50 000 for contents stolen after a break-in, and the excess for that claim is N$500, your net payout from us will be N$49 500.
Example
Your household contents are insured with us for N$200 000, but the cost to replace all the items before the loss is N$400 000.This means you are under-insured by half (or 50%), which is for half of any claim you make.
So if N$50 000 of your contents are stolen in a burglary, we can only pay out half of N$50 000 = N$25 000.
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