All posts by Arjun Iyer

How Much Excess is the Right Amount?

Technical Insurance Content

When you’re shopping for car insurance, an important term you’ll find is “excess”. An excess is a type of contribution that you, (the driver), are required to pay towards a claim before the insurance company pays the remainder. Insurers may have various types of excesses. What applies in your case depends on the individual situation. When you are shopping for a car insurance plan, it’s important to choose an excess wisely.

Many insurers will allow you to select the level of excess you require. Thus by choosing a lower excess, you will have less to pay out of pocket in case of a claim, but your premiums will be higher, and if you choose a higher excess, your premiums will be lower, but you will be liable for more to pay out of pocket in case of a claim. For most people, this is the best way to control your premiums. That being said, however, there are some concerns to keep in mind. You should never select an excess that is too high. In case of an accident, when you need to make a claim on your policy, you will need to pay a higher amount out of pocket. There is a real risk of keeping your excess too high to achieve a greater of savings, but then struggling with the payment at the time of a claim.

Diversity Casual People Insurance Policy Benefits Help Concept

An excess works by shifting some of the loss risk from the insurer to you, the driver. The amount of the excess is how much you will have to pay out of pocket before your insurance company does. As a result, insurance companies can reduce your premiums.

What Types of Excess Are There?

The type of excess you are liable to pay are specifically listed on your policy. Consider these types of excess:

Basic Excess: This applies to all claims. No matter the type of claim, you will pay the standard excess.
Age Excess: This generally applies in situations where the driver is under 25 at the time of making the claim. It may apply in other situations as well.
Age and Unlisted Driver Excess: When the driver involved in the incident is not listed on the policy directly, such as a casual driver, but is under the age of 25, this excess applies if it is included on the policy.
Age and Inexperienced Driver Excess: If the individual is over 25, but he or she does not have at least two years of driving experience, this type of excess applies if it is listed on your policy.
Additional Excess: In some cases, the insurance company may require a special or additional excess. This may be due to the vehicle or other circumstances related to previous claims.
In many situations, you do not have to pay the listed excess. This does not apply in situations where you are not liable in the accident. In that case, the driver at fault pays the losses. Carefully consider how much you can pay when selecting an excess limit. When choosing insurance, this directly impacts your costs.

No BANG for your buck – The cost of being uninsured

Information and Alerts

Botswana has a significant number of uninsured or under insured drivers. This article talks about the risks you face when you drive without coverage.

Driving without insurance cover, or driving with low insurance coverage (being under-insured) is a risky gamble which inevitably becomes expensive if you have an accident. Botswana has a large number on uninsured drivers on the road, which puts the drivers themselves, and third parties at risk. Alpha Direct offers products, which can make car insurance more affordable, and reduce the risk of personal liability should an accident occur.

Before driving on our country’s beautiful roads, Batswana need to consider the risk of driving uninsured. While there can be small savings on taking on the full risk, especially during difficult financial times, the implications of driving without cover affect not only the uninsured party, but those who do have insurance and even the providers of insurance solutions.

Statistically, every year, one in four people will be involved in a vehicle accident. This puts nearly each and every one of us at major risk. The cost of a vehicle accident can run from the low thousands of Pula, all the way to hundreds of thousands, and in some cases millions of Pula! Uninsured people could have their wages garnished if they are unable to cover the cost of a claim. With over two-thirds of drivers on our roads being uninsured, your chance of being hit by a driver without insurance is high, and getting your dues from another uninsured driver can be an arduous and time consuming affair, and even if you are insured, you will need to consider your excess which will need to be paid to your insurer.

While one aspect to consider is the damage to your vehicle, if you caused the accident, you will probably also be held responsible for the surmounting costs of repairing the damage caused to the vehicles or property of other people, which could be pursued either by them or their insurance company against you.

No matter which way you look at it, the negligible cost of premiums absolutely outweighs in benefit, the cost of an accident. If you are presently uninsured, contact an Alpha Direct Agent at 392-8264 to receive a free quote.

What Does Household Contents Insurance Include?

Information and Alerts, Technical Insurance Content

To follow up on our previous post on Home and household contents insurance cover, this week we will get more in-depth on what items are covered under household contents insurance.

An image of home insurance icons
Household Contents Insurance

Your home is one of the most valuable assets you have, if not the most valuable. You may have home insurance that provides protection to the structure itself. This is a necessary type of cover because it can protect you from financial loss associated with fire or damage to the building itself. However, if a fire should occur, the structure is not the only thing at risk. Many times, people lose valuable assets within their home as well. Household contents insurance provides that level of protection.

What Will This Insurance Cover?

Household contents insurance provides cover for a variety of personal items in your home at the time of a covered incident. These contents and personal effects may include items such as the following:

  • Items that you own
  • Items you are responsible for at the time the dwelling suffers a covered peril
  • Clothing
  • Household appliances and goods
  • Furnishings for your home

 

If you have items that are very valuable, you will need to report these items to the insurance carrier before such an incident occurs. By providing documentation for items like this, you are more likely to receive reimbursement for those items if an incident occurs. Examples of this may include high-value jewelry, art, collectibles, coins, or other items with a very high value. In some situations, you will benefit from increasing the amount of your coverage to ensure it is high enough to cover the value of these high-end items. Simply inform your insurance carrier about your specific valuable items and their estimated or appraised value.

What Type of Perils Does Household Contents Insurance Protect Against?

Household contents insurance protects against the same types of perils home insurance covers. This will vary from one policy to the next. The most common types of perils include fire and theft. Lightning, storm damage, and flood damage are also often covered. If you are unsure of a type of risks covered, talk to your agent about any limitations.

How to Keep Contents Safe

While your household contents insurance is an important part of protecting your home, it is also important to take steps to keep your home safe and secure.

  • Be sure to install home security systems on your home whenever possible. These will help deter thieves from trying to break into your home.
  • Install bars along your windows to keep people out. Be sure to keep windows and doors locked at all times to ensure you remain safe. Theft is a big concern in Botswana.
  • Consider investing in security boxes and safes to help protect very high-value items. Place jewelry and coins, for example, in this type of storage.

Home contents insurance can protect your belongings from many of the biggest risks. It can help to protect your contents from risks you cannot control such as oil leakage and water damage. It could help cover risks such as malicious damage or theft. You take every step possible to keep your home and family safe. However, when something does happen, you will appreciate having home insurance and contents cover to rely on to help you avoid the financial loss.

How to Keep Your Household and Contents Safe During the Festive Season

Information and Alerts

robbery

The festive season should be about family and friends and you shouldn’t have to worry about theft and vandals. Even so, it is quite the common problem for many households during this time of the year. Crime often goes up during the festive season in Botswana, as well as most other areas. You can protect your home and your family from it by making a few upgrades and modifications to your home now.

Get the Proper Type of Homeowner’s Insurance

Even as you take every step toward improving your home’s safety, there will still be some level of risk present during this time of the year. Your first step is to look at your existing homeowner’s insurance policy and find out if it provides enough protection to meet your needs. There are two major components of this type of insurance you need to have to remain safe:

Homeowners’ Insurance: This particular type of insurance coverage protects the structure of your house. With this type of coverage, you gain protection from risks such as fire and water damage. Additional options may include accidental demolition, or other types of risks to the structure itself.

Household Contents Insurance: This type of cover provides you with security over the contents, or assets, you own. These are items within your home such as your household appliances and personal items. Protect against theft or damage to these items.

At this time of the year, it is important to reassess your current insurance coverage and determine if you have enough protection, or if you need additional coverage. Also, look closely at the policy to be sure it covers all components of your home, including high value belongings.

How to Keep Your Home Safe

With your insurance in place, you can rest easy knowing your property is protected should someone cause damage. It’s also important to take every step possible to reduce risks of these incidents occurring. These tips can help you to do that:

  • Install smoke detectors in your home, especially near sleeping areas to ward against fire and smoke damage.
  • Install burglar bars on doors and windows. Ensure your windows and doors are locked at all times even if you are at home.
  • Install alarm systems for the house itself. The most modern systems can help you protect your home and ward off would-be thieves.
  • Add electric fencing to your compound wall to discourage theft.
  • Keep the property clean and tidy to avoid the risk of fire damage.
  • Install an intercom system so that no one enters your property without first gaining access from you directly.
  • If you should have an incident of theft, or potentially fire or other damage, contact your insurance carrier right away.
  • Be sure to file a police report as soon as you notice the damage or the illegal entry. This will help the insurance company process your claim as well.

Most importantly, don’t fight back against an intruder. Your belongings are not more valuable than your life. And, your insurance is likely to provide you with the compensation you need to overcome this loss.

Every home is at a higher risk during the festive season, but you do not have to be a victim. Often times, thieves seek out the easiest target rather than a home that is well protected and guarded.

Protecting your home

Information and Alerts,

Protecting Your Home

Hand of the businessman with the house

We were recently at the 2015 Builder’s Expo at the Airport Junction Mall. We were there to educate consumers and offer up quotes to the public, and as usual, the response was overwhelmingly positive. While we’re well known for our great coverage and competitive offerings on the motor insurance side, we also offer some exceptional products to cover the other valuables in your life. One of our offerings, Home Insurance provides you with cover for your home (Homeowner’s Policies) and its contents (Household Contents); but what does homeowners insurance exactly protect? Each home insurance policy is different, but standard policies usually offer:

– Broad coverage for damage to your home and/or any permanent structures on your property, which could vary depending on your policy (Homeowner’s coverage)
– Damage to your personal property on specific items listed on your policy. This would include your assets in the house (Household Contents coverage)
– We also offer various coverage options for the contents of your home to protect them from fire, wind, hail, lightning and theft. After you pay your deductible, you’ll be covered for the entire remainder of damage or loss.

If you are a tenant in a rental property have you considered a renters insurance policy for all your stuff? You have valuable items in your home too – replacing them could be more expensive than you think.

Alpha Direct offers highly competitive coverage on homeowner’s, household content and renter’s coverage, and you may qualify for further discounts on your policy if you have:

  • A monitored alarm system
  • Deadbolts on your doors
  • Smoke detectors in your house

Most banks typically will require homeowners to take out insurance coverage for the length of your mortgage, but since there is no mandatory coverage for renters, people often overlook taking out policies which could result in catastrophic losses or theft. Insurance coverage is always the smart way to protect yourself.

What information is required for a quote?

We may require some details such as the year the house was built, the address, and a recent valuation of the property. If you are covering the contents of the house, then a list of items and their values may also be required. – Click here to get a quick, easy and free quote.