Discovery Insure

Dear Valued Client Make sure you are adequately covered, given the weakening rand In 2015, the rand depreciated by 34% against the US dollar and is showing no sign of recovery yet. This has a significant impact on the cost of imported goods. Some examples that we have found: Household contents: Item Cost Price in January 2016 Price increase Samsung 660 litre side-by-side fridge/freezer R10 800 (in June 2014) R14 000 Almost 30% over 19 months Portable possessions: Item Cost Price in January 2016  Price increase Citizen Eco-Drive dress watch R3 950 (in April 2015) R6 060 Over 50% over 9 months Nikon D7100 Camera R10 400 (in October 2014) R19 900 Over 90% over 16 months

Given these circumstances, you may be underinsured if you have not recently update your cover.

Avoid underinsurance by getting your cover updated

Your household contents need to be insured for the total replacement value or average may apply at claims stage. For example, if the correct replacement value of your household contents is R600 000 and you have insured it for R300 000 and have a loss of R100 000, you will only be compensated for 50% (R300 000 / R600 000) of your loss (or R50 000).

You can request an asset inventory tool from our office to assist you determining the correct value (also available on www.discovery.co.za). Alternatively you can request an asset inventory to be completed at your premises.

You should also re-examine your portable possessions cover, specifically your specified items. Given the currency depreciation, it is highly likely that jewellery and watch items have become underinsured. We encourage you to update your valuation certificates and sums insured to prevent underinsurance.

If you have any questions, or would like assistance with a quote, please do not hesitate to call my office on 021 975 3199.

Regards,

Tersia van Nieuwenhuizen
Independent Contractor to Discovery Life
Direct: +27 21 975 3199
Fax: +27 21 975 3995
Email: tersiav@ic.discovery.co.za
URL: www.discovery.co.za

An authorised financial services provider - FSP No. 18147