Living together? How to insure your belongings

If you’re in a serious romantic relationship, you can insure your things jointly under one policy, but if you are just friends or housemates, you need to be separately insured.

THE economic downturn over the past year, coupled with the need to reduce expenses, has seen a rise in vacant properties across South Africa and an increase in people living together, or cohabiting.

Taking the decision to move in with a housemate or your partner is a big step. It’s wise to consider the emotional, financial and insurance implications and have critical conversations upfront.

Personal lines underwriting managers at Santam, Marius Steyn and Marius Neethling, say that there are a few considerations people need to think about when merging households. “In the scenario where you move in with your partner, an insurer usually considers you the equivalent of a common-law husband and wife, depending on the seriousness of your relationship. That means you can take out a policy together.

“If you are moving in with a housemate, you and your housemate will need your own separate insurance policies. In this case, you will have to insure your own belongings, and communal-living underwriting rules will apply.” Steyn and Neethling offer advice on what to consider before co-habiting.

HOUSEHOLD CONTENTS COVER

Moving in together often results in a staggering amount of “stuff”. Which means you and your partner or housemate will probably need to update the household contents insured amount. If your relationship is seen as serious (insurers look for things like how long you’ve been together and if you’ve bought furniture together), an insurer will treat you the same as they would a married couple. This means you can take out a policy between you, with one person being the main policyholder and the other the “additional insured”.

SOME CONSIDERATIONS

● Remember, the main policyholder will be paid out in the event of a claim. It’ll then be up to him or her to pay the additional insured. Insurers don’t get involved in these politics and are not responsible if the policyholder does not pay his or her partner or housemate. So, trust is important.

● If you both have separate household contents policies with different insurers and are wondering which insurer to go with, don’t just pick the lowest premium price: consider the benefits and excesses – what you pay and what you receive in return.

● Get your household contents evaluated (or use an online calculator) so you’re certain you’re adequately covered for the replacement value of all your combined items. (Remember that replacement value is what it would cost to replace an item with a similar new item, not a second-hand one.)

● If you and your partner or housemate move home, you should notify your insurer of the new address prior to the day you move.

● It’s in your interest to tell your insurer about all the security features in your home. Generally, there will be specific security requirements in order to qualify for burglary and theft cover.

● It’s not commonly known, but, if you happen to argue and temporarily move out and take some of your household contents with you, these items will still be covered in your temporary abode, providing this is a private building – not a tent or caravan, for example. This only applies to a temporary situation though – if it’s a permanent split, then you’ll need your own new policy.

● Vehicle insurance is also important. Remember to add your partner as a regular driver on your policy if he or she uses your vehicle more frequently than you do.

● If the relationship comes to an end, you should get your own policy as soon as possible, especially if you have one policy between you, but you’re not the main policyholder.

Remember, if you’re the additional insured, it’s up to the policyholder to pay you in the event of a claim, which could get difficult if you’re not together anymore. Supplied by Santam