Accidental Damage covers unintentional damage to your building or its contents. Accidental Damage provides protection for events not covered in the Buildings, Contents (fire, flood, storm, etc.) or Theft sections. It is usually a requirement to have buildings or contents before being able to take the accidental damage section.
You probably need Accidental Damage insurance if you are at risk of accidental physical loss of, or damage to any of your property. This cover is especially relevant for events that are not covered in the Contents and Buildings sections (those sections cover fire, weather events and some others).
Some types of property and events are not included (see the “What is typically included” and “What is typically not included” sections).
Your insurance policy will have its own specific list of insured events and exclusions. It is best to check with your insurer or the policy wording to confirm the details of your Accidental Damage insurance policy.
Some commonly covered and not covered items include:
This is typically the maximum value that you would like to be covered for (first loss).
First loss
The amount chosen will be the maximum amount that will get paid out. Say the total value of all property at your address is R100 000. You believe that there is a low chance that everything will be damaged at once, so you choose cover for only R50 000. If damages are more than R50 000, the insurance company will only cover R50 000, but if the damages are less than R50 000, they will cover the full amount.
Property
Leakage
The impact of under-insuring or over-insuring can affect your business in different ways
First loss
Let’s say the true replacement value of the property is R100 000 but it is only insured for R50 000. Any claims up to R50 000 are covered, but the insurance company will only pay out R50 000 for any claims above R50 000. The rest must be paid by the business.
Underinsuring for accidental damage really just isn’t worth it in the long run! While over-insuring can lead to unnecessary high premiums.
Generally, the higher the level of risk that a business is exposed to, the higher the cost of the premium.
It is best to submit the claim form as soon as possible after a loss to ensure that there are no delays or issues, some insurers may request reasons as to why there was a delay in claiming if a form is submitted after 30 days from the date of loss.
If there is no cover taken out under any other section, excluding portable possessions, there could be cover under Accidental damage for damage to items, such as stock, etc.
Yes, you can cancel your policy with immediate effect 24/7 on your Bi-me portal. We will then process your pro-rata refund (if applicable) – the money should be back in your account within 7 working days.
