Insurance is supposed to provide peace of mind. Pay your premiums, something goes wrong, you claim, they pay. Simple, right?

Not anymore.

We’ve seen a troubling pattern this year: insurers finding increasingly creative reasons to reduce or reject claims. The common thread? Policyholders not understanding responsibilities buried in policy wordings that most people never read.

Let me be direct: the risk of non-compliance sits on your shoulders, not ours as brokers. We can guide, remind, and advise – but we can’t know every detail about your assets or ensure you’ve read every email we send.

Here’s what’s costing clients’ money:

The Asset Valuation Trap

The Problem:

You insure what you own. Sounds obvious. But most people get the values catastrophically wrong.

Real Example:

A client insured their home for R3.5 million – its market value. When they claimed after a fire damaged a significant portion, they discovered they’d massively under-insured. Why? Because market value and replacement cost are completely different numbers.

That R3.5 million property? Would cost R5.5 million to rebuild from scratch with current building materials, labor rates, and professional fees. The settlement? 50% of what they expected. They couldn’t afford to rebuild properly.

The Math:

If you insure for R3.5 million but need R5.5 million to rebuild, you’re only 64% insured. Most policies apply “average” – meaning the insurer pays 64% of any claim, not just total losses. A R200,000 roof repair becomes R128,000 in your pocket. You cover the difference.

What You Must Do:

  • Don’t use market value for buildings – ever
  • Get a professional building valuation – not an estate agent’s price
  • Update valuations every 2-3 years – building costs inflate faster than you think
  • Review your schedule annually – that jewellery, those electronics, your car’s actual replacement cost

We send you policy schedules for a reason. Check them. The responsibility is yours.

The Property Inspection Reality

The Problem:

You buy a house. It looks solid. Three months later something fails and you discover the previous owner cut corners. You claim. The insurer refuses.

Real Example:

A client bought a home, moved in, and settled into their new life. One month later, a severe storm hit and their perimeter wall collapsed – nearly crushing their car in the driveway.

They claimed. The insurer sent an assessor who found sub-standard construction: inadequate foundations, improper reinforcement, drainage issues. The insurer’s position? “The policyholder should have identified these defects before insuring the property.”

Claim repudiated. Large rebuild cost: entirely out of pocket.

The client’s response: “How was I supposed to know? I just bought the place!”

The insurer’s response: “Your policy wording requires a professional inspection at purchase.”

What You Must Do:

  • Read your policy wording when you receive it – especially new property purchases
  • If it requires an inspection, get one – budget R5,000-R8,000 for a professional building inspection – if you want a discounted price reach out to us, we have formed a relationship with an inspection company to assist.
  • Document everything – the inspection report becomes your protection
  • Understand that “looking fine” isn’t enough – structural issues hide behind paint and plaster

The inspection costs a fraction of what you’ll pay if something goes wrong and the insurer finds an escape clause.

The Communication Breakdown

Here’s the uncomfortable truth: insurers send you policy documents, endorsements, and updates constantly. Most people never open them.

Then something happens, you claim, and the insurer points to clause 17.3(b) in the document you received eight months ago.

What You Must Do:

  • Open emails from your insurer – especially those marked “important” or “policy update”
  • Read your annual policy schedule thoroughly – check every value, every excess, every exclusion
  • Ask questions when something’s unclear – that’s what we’re here for
  • Update us immediately when circumstances change – new valuables, renovations, changes in use

Where We Fit In

We’re your advocates and advisors. We’ll:

  • Negotiate on your behalf when claims arise
  • Explain policy wordings and requirements
  • Remind you of your responsibilities
  • Guide you through the renewal process
  • Fight for fair treatment from insurers

But we can’t:

  • Know the exact value of your assets
  • Inspect your property without being asked
  • Force you to read policy documents
  • Make decisions about your coverage on your behalf

The partnership works when both sides engage.

Bottom Line

Insurers are tightening the screws. The days of “we’ll sort it out” are over. They’re looking for reasons to reduce payouts, and policy compliance is their favourite weapon.

Your defense?

Know what you’re insuring. Know what it’s worth. Know what your policy requires. And for the love of everything, read the documents we send you.

Questions? Call us. That’s what we’re here for.

But the responsibility to engage? That’s on you.