Over Insuring Your Guest House

Whilst under insurance can have severe implications on claims and cause financial hardship, the answer is not to over insure.

Over insurance simply means paying for something you will never benefit from.

For example car insurance:

A car is insured for 200,000 and is written off in an accident. The assessor comes to the conclusion that the car can be replaced for R160, 000.

Result is that only R160, 000 is paid out. Premiums have been paid on R40, 000 cover unnecessarily.

Summary

Prices change constantly and whilst something’s get more expensive others decrease in price. Cars and electronic goods are an obvious example.

Your broker should review annually with you to ensure appropriate sums insured are in place. The aim is simply the right cover and the right price.

Incompass would be delighted to discuss your insurance needs and provide you with a free quotation based upon your specific circumstances.

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