Page 40 - Hollard Namibia – Motor & Household Policy Wording

Buildings
Bank may be paid out before you
The financial institution financing your home always has first right to any claim payment, if this is the only way to settle any outstanding debt you still owe them.
This means that if you are financing your home with a bank or authorised credit provider, be aware of the fact that they are entitled to use your insurance payout to settle any money that you still owe them.
What if you are under-insured?
If you have insured your home for less than its actual 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 use the principle of average.
What if matching building materials are not available?
We do not have a duty to repair your home to precisely match its previous state. We will repair it as closely as circumstances reasonably allow.
Where we cannot match it exactly, we will use materials that in our opinion, match the damaged or lost materials as closely as possible. We will only do this to the part of the structure where the loss or damage has occurred.
Rebuilding your damaged home
If the building is damaged to such an extent that it has to be rebuilt completely, and you choose to do it personally, we will pay you for the cost of rebuilding it. You can have it rebuilt on the same site, or elsewhere.
This is subject to the following conditions:
o rebuilding starts within 6 months;
o the total cost, which we will pay, will not exceed the cost of bringing the building back to its original
condition or the sum insured, whichever is the lesser;
o we will not make any payment to you until you have actually incurred the costs.
Example
Your building is insured with us for N$2 000 000, but the cost to replace it is N$4 000 000.
This means you are under-insured by half (or 50%). Put another way, you are only insured for half of any claim you make. If your building is damaged in a storm and it cost N$50 000 to repair, we can only pay out half of N$50 000.
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