This according to Bertus Visser, chief executive of distribution with PSG Insure, an independent financial services group that extends its services in the Sandton area.

He explained that at the beginning of November last year, the rand was trading at just under R14 to the US dollar. “Today it is valued at around the R16 mark, indicating a decrease of over 15 percent,” he said. “Your insurance cover is also impacted and may, in fact, no longer be sufficient to protect you against the depreciating rand.”

Visser advised Sandton consumers to take a look around their house, or their business and calculate their costs. He added that the financial impact became more severe as the value of imported goods rose, and businesses which held large quantities of imported stock should, therefore, take particular care.

“How many items are imported, and will it cost more to replace if they have to be re-bought using a weaker rand?” he asked.

“First on your list at home might be your flat screen television, your laptop and perhaps your cellphone. At your business, it might be trading stock, electronics or specialised machinery.”

Looking at how the rand’s value would affect insurance, Visser advised consumers to be absolutely certain that all insured items were covered at the right replacement value. “Being underinsured can lead to a claim being repudiated or to receiving a smaller payout based on the insured value provided, which may no longer be sufficient to cover your loss,” he explained.

Visser added that such a loss could result from either theft or damage caused by fire, flooding or other unforeseen events. “For example, if you have installed expensive, imported carpets and experience flooding, you must make sure that your insurance would be sufficient to cover replacing your carpets at today’s value,” he said.

Visser advised that keeping an eye on the dollar exchange rate was important and keeping your policy up to date. Also, reviewing your cover at least once every six months to make sure it remains adequate.

“There are many factors to weigh up and if you are unsure about your replacement value or anything in your policy, chat to your financial adviser,” he said.

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