HOUSEHOLD GOODS SECTION
1. Introduction
Household goods insurance covers the contents of the Insured’s home, the items in the garage
and/or storeroom as well as garden furniture and other outdoor items against loss arising from
insured events detailed in the policy wording. However, there are conditions attached to the cover
provided.
Holiday homes should not be treated as primary residences. We should only insure a holiday home if
we insure either the building and/or household goods of the primary/main residence of the
policyholder.

In certain cases the primary residence (main residence) may be insured on a separate policy if
the policyholder wishes to insure the holiday home separately as it could be going off a
separate debit order. In these instances, the holiday home may be insured on its own as we
already have the supporting business.

The Western and Eastern Cape area have many clients that own holiday homes and are
resident in South Africa for the summer months, and then reside overseas during their summer
months. These clients are referred to as “Swallows” and special terms and conditions are
imposed - (refer to Holiday Homes).
The Insured cannot take out household goods insurance to cover only specific items, such as a
television, DVD player, sound system etc.
If household goods are removed from the premises such as gaming consoles, camera’s, video
camera and the like, these must be insured under the All Risks section. Property under this section is
only covered whilst within the primary residence, which would include:

In a building you are temporarily living in;

In a building you are employed in;

Inside the building of a business where your household goods are being made up, altered,
renovated, repaired, cleaned or dyed;

A commercial storage facility
All household goods insurance is provided on the basis of “New for Old”. This means that the
policyholder will be compensated for what it would cost to replace the insured item at current
replacement prices rather than what it originally cost at the time of purchase. The insured must
therefore keep abreast of the current replacement cost of their possessions. The item will be
replaced with a new current item and if the sum insured is found to be inadequate, the condition
of average will apply.
When cover is incepted under this section, the policyholder places a value on their household
goods, by insuring them for a particular sum insured. This sum insured less any excess that the
policyholder must pay, is the maximum amount that Mutual & Federal will compensate if
everything is lost, stolen or damaged. Should the policyholder insure his household goods for a
sum insured of say R300 000 and following a loss, it is found that the value at risk is R200 000,
then the claim will be settled on the lesser amount, less the excess. This is called over-insuring
and the policyholder will pay premiums on an amount that he/she would never get should a loss
occur as a result of an insured event.
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If the sum insured of the household goods is found to be inadequate, then the condition of
average will apply. This means that if at the time of the loss or damage, the replacement value is
more than the insured amount; the full amount of the client’s claim will not be compensated.
The condition of average is calculated in this manner:
The difference between the replacement value and the insured amount is calculated and applied
proportionately to the claim. The client then becomes responsible for the difference.
Illustrated below is how the average clause is calculated:
Sum Insured______
Actual Value at Risk
X
Amount of Loss = Settlement amount
R150 000
R200 000
X
R6500 = R4875 (Settlement amount)
Note it is the policyholder’s responsibility to insure their household goods for the
replacement value. The Mutual & Federal inventory form can assist the insured in determining
the correct replacement value of his household goods.
Home
means the main building and buildings connected by a door to the main
building (adjoining buildings) situated at the address shown in the
schedule. It is the home where you permanently live.
Outbuildings
means the separate buildings on your property, for example domestic
outbuildings, home offices, and private garages also situated at the
address shown in the schedule. Unless otherwise stated in the schedule,
the outbuildings must be made of brick, stone or concrete with a slate, tile,
metal, concrete or asbestos roof
means wild baboons or wild monkeys that live freely in the natural
surroundings and are not kept as pets or farm animals, or kept confined in
any way.
Wild baboons
or wild
monkey’s
3.
Dependent sections
This section can be taken out on its own. Personal Liability cover will automatically be included
with this section.
There is no excess applicable for household goods liability
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4.

Who we insure
The policyholder

The policyholder’s spouse

The policyholder or spouse’s children who permanently live with the policyholder and are
financially dependent on the policyholder

Other family members who permanently live with the policyholder and are financially
dependent on the policyholder. To be insured, these family members must be named in the
schedule as co-policyholders.
Due to the number of families now living together as a result of the financial crisis, cover is
available on the policy. However, due to insurable interest, the names of these family
members must be specified on the policy as mentioned above.
5.
Underwriting Rules
Personal Liability cover is automatically included with this section. The TIA system will
automatically add this section; however it is important that you check when issuing a policy.
It is imperative that all relevant information pertaining to the Insured and to the risk we are insuring is
obtained and captured correctly on the system. Incomplete information must not be accepted and we
must ensure that we have all the necessary information to make informed underwriting and rating
decisions. Ensure that the street number and correct spelling of the street name is captured. Under
no circumstances must "garbage" data be captured on the system.
5.1 Declined/Referral Risks
The following table contains risks that must either be declined or referred for acceptance.
Mutual & Federal reserves the right to accept or reject these risks, apply additional terms
and/or survey the risks.
AUTOMATIC REFERRALS
DECLINE
 Residence located in a dolomite area
No subsidence cover to be provided in these areas
until a geotechnical report has been done and
accepted by M&F
 Non Standard Construction of both roof and wall
types
 Residences situated on Small-holdings (note details
of security and surrounding area will be required)
 Residence unoccupied for 60 or more days per
year
 Premises for hire
 Sum Insured over the limit of R20 000 000
 Holiday Home
 Residence is Within 500 meters of shoreline, river,
lake or dam
 Communes (there are a number of persons
(two or more unrelated) living together who
share furniture, appliances etc. There is very
little security from inside the residence as rooms
are also shared. In the event of a loss, it
becomes difficult to prove insurable interest and
who was responsible for the loss)

Mobile park homes (As a result of the
construction materials of a mobile park home, it
is exposed to the elements and there is not
much protection from a theft aspect)

Caravans
 Properties under construction
 Premises Bought for hire (If the primary residence
and/or any other residence is permanently hired
out, our exposure to claim is that much higher due
to tenants maliciously damaging or stealing from
the premises. The subsequent residences can be
insured provided that the insured’s primary
residence is insured with us)
 Roof constructed of shingles
 Vacant properties
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5.2 Subsidence and Landslip
Cover in respect of Subsidence and Landslip is automatically included if the risk address is
not situated within a “high risk” area.
Certain areas are recognized as being “high risk” and are not acceptable for subsidence
and landslip cover. We will not provide subsidence cover until a geotechnical report has
been completed, the cost of which is for the insured’s own account.
Dolomite or clay soil is very soft and can move. The areas identified consist of dolomite or
clay. The risk is increased as cracks can form in homes and in some instances cause
collapse or partial collapse of buildings.
Please refer to listed Dolomite/clay areas as per the attached that must be referred to
Personal Technical for acceptance. It is important to note that these areas are
programmed into the TIA system and a referral will be generated.
5.3 Decoders and Satellite dishes
Cover for Decoders and satellite dishes are available under the Household Goods section
and not the All Risks section.
5.4 Jewellery and watches
Jewellery and watches over R25 000 per item must be kept in a safe if not worn. If not,
cover will be limited to R100 000 in the event of a claim. Proof of ownership and valuation
must be provided in the event of a claim. At claims stage, the policyholder is required to
produce a professional valuation certificate for all jewellery and watches over the value of
R25 000. This valuation must have been done before the loss or damage. If the insured
does not have this certificate, the insured’s claim will be limited to the limit shown in the
schedule for each item, which is R25 000.
If at the time of loss, it is found that the jewellery and watches are not kept in the safe, then
the policyholder will not be compensated for loss or damage caused by theft or attempted
theft for more than the “safe warranty limit” as reflected in the “Insured Events” document.
It is vital that the policyholder updates the valuation certificate for all jewellery and watches,
over the value of R25 000, on a regular basis to ensure that the jewellery items are not
underinsured.
The wording has been extended to state that the keys to the policyholder’s safe must also
be kept away, secure and hidden from sight.
5.5 Pairs and sets
The insured is not compensated for any additional, special value that an item has because it
is part of a pair or set. The insured is only compensated for the proportionate value of the
part of the set that is lost or damaged. This limits Mutual & Federal’s compensation to pay
only for the item that has been lost or damaged and not the whole set and excludes the drop
in value of the set owing to the loss or part of it. The condition clearly states that Mutual &
Federal will only compensate the insured for the proportionate value of the part of the set
that is lost or damaged.
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5.6 Jacuzzis
There is cover in terms of the definition, if the insured is the tenant and not the owner of
the property. The sum insured should be increased to include the value of the Jacuzzis
and clause 83 “Specified contents” must be added.
5.7 Security Measures
5.7.1 Minimum Security
The Private residence must have:

burglar bars on all opening windows
unless

the Private residence is a flat situated above 1st Floor and there is
controlled access into the building (must be a security guard)
or

the residence is in a security complex with security guards, access control,
1.8 meter electric fencing, gates or booms. (access control is defined as
having guards controlling the access )
or

the residence is protected with an approved alarm system linked to a 24 hour
control room with armed response
Note: Where there is ongoing construction within a security complex, the risk may
not be regarded as a security complex until the construction has been
completed.
5.7.2
Approved Alarm Systems
Mutual & Federal now only accept SAIDSA approved alarms
SAIDSA approved alarm systems are those systems which the members (Installers)
have been approved by SAIDSA (South African Intruder Detection Services). A
certificate / letter must be obtained to certify that minimum standards have been
complied with.
Refer to www.saidsa.co.za website for more information. To obtain a list of
members please go to: http://www.saidsa.co.za/membermain.htm
Alarms are required when the household goods sum insured is R1 000 000 and above.
The SAIDSA approved security installations must be used as being of an acceptable standard for
the application of a premium reduction.
The SAIDSA approved alarm must be linked to a 24 hour control room, be monitored, must be
tested at regular intervals and the Security Company must provide an armed response when the
alarm is triggered. The relevant alarm warranty is stated in the policy wording.
If the alarm is an underwriting requirement: (this means that an alarm is required in addition to the
existing system rules), no discount will be allowed and the Alarm warranty will be applied
automatically by the system.
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Non SAIDSA approved alarms will no longer be noted on the system.
Note: We do not consider occupation of an outbuilding to be occupation of the Home.
Kindly note that an alarm linked to the South African Police Services, it would not be
considered as an approved alarm system because they are not SADISA approved
If the abovementioned minimum security cannot be complied with, an additional excess
per sum insured band will be applied as follows:
REQUIREMENT
Residential Home
Sum Insured
Rule
Action
Zero up to 99 999
Burglar Bars OR Alarm
If NOT, excess R2 000
100 000 up to 199 999
Burglar Bars OR Alarm
If NOT, excess R2 500
200 000 up to 299 999
Burglar Bars OR Alarm
If NOT, excess R3 000
300 000 up to 399 999
Burglar Bars OR Alarm
If NOT, excess R3 500
400 000 up to 499 999
Burglar Bars OR Alarm
If NOT, excess R4 000
500 000 up to 599 999
Burglar Bars OR Alarm
600 000 up to 699 999
Burglar Bars OR Alarm
700 000 up to 799 999
Burglar Bars OR Alarm
800 000 up to 899 999
Burglar Bars OR Alarm
900 000 up to 999 999
Burglar Bars OR Alarm
If NOT, excess R5 000
1 000 000 up to 1 499 999
Alarm only
If NOT, excess R7 500
1 500 000 up to 1 999 999
Alarm only
If NOT, excess R12 500
2 000 000 and up
Alarm only
If NOT, excess R17 500
REQUIREMENT
Security Village, Retirement Complex or Flat
above first floor
Sum Insured
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Rule
Zero up to 99 999
None
100 000 up to 199 999
None
200 000 up to 299 999
None
300 000 up to 399 999
None
400 000 up to 499 999
None
500 000 up to 599 999
None
600 000 up to 699 999
None
700 000 up to 799 999
None
800 000 up to 899 999
None
900 000 up to 999 999
None
Action
None
1 000 000 up to 1 499 999
Alarm only
If NOT, excess R7 500
1 500 000 up to 1 999 999
Alarm only
If NOT, excess R12 500
2 000 000 and up
Alarm only
If NOT, excess R17 500
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Security gates do not form part of our minimum security requirements. It is very
important to obtain the clients correct security details.
Many security estates are so well secured that they do not allow alarms. In these
instances the above additional excesses will apply as per the value of the household
goods sum insured. The excess must not be waived.
There are areas that are exempted from our minimum security requirements. There
is a list available which outlines the areas in the Boland as well as Leopard Greek
Golf Estate in Malelane that are exempted.
5.8 Accommodation Risks
The size and loss ratio of the broker’s portfolio will play a role in determining the
acceptance of these risks.
5.8.1
Roof construction not tile/slate/corrugated iron/asbestos
These types of risks will create a referral if the risk has a non-standard roof/wall i.e. if
not tile, slate, corrugated iron, thatch
Special rates, terms and conditions would need to be applied to these risks if
accepted. These risks must be surveyed prior to going on risk
If the roof construction is Thatch or any other non-standard construction, you must
ensure that all details about the risk are obtained before referring these risks to
Personal Technical Underwriting.
Where Buildings are roofed with Thatch an SABS approved lightning mast will be
required and the Lightning Mast Warranty will apply. Certain areas within the
Western Cape do not require lightning conductors. These areas have been built into
the system and the lightning warranty will automatically not be applied by the
system. Refer to the available list of areas exempted from applying the lightning
warranty.
Thatch roofed lapa’s classification
 Smaller than 50m² and closer than 4 meters from dwelling
If in proximity or immediately adjacent to dwelling and roof area of lapa is less
than 15% of roof area of dwelling, it is classified as the same construction as the
main house
Page | 7
•
Larger than 50m² or larger than 15% of roof area and closer than 4 meters from
dwelling
Regard dwelling and lapa as thatch construction (fire hazard to dwelling)

Further than 4 meter from dwelling
Both dwelling and lapa can be classified as separate risks, which correct
construction noted for each

Theft cover for LAPA’s is restricted to Forcible and Violent entry.
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Clause 714 – Lightning Conductor
Your home or outbuildings must be protected by a SABS approved lightning mast.
We do not compensate you for loss or damage resulting from lightning unless the home or
outbuildings are protected by an SABS approved lightning mast.
Note:
Harvey thatch tile is an alternative to thatch. The Harvey thatch tile is a product introduced
by Harvey Roofing Products to provide the natural beauty of thatch with the strength of
steel.
The Harvey thatch tile can be installed on top of existing thatch, cape reed and isolation so
that the client will still maintain his thatch look, mood, warmth and character inside his home.
Alternatively, the Harvey thatch tile can be installed exactly like a steel Harvey tile or
concrete roof tile.
There will however be a difference in rating.
1. If the Harvey thatch tiles are installed over thatch then the rating and thatch
classification as applied to thatch risks remains the same.
2. If the Harvey thatch tile is installed as a standard roof tile, i.e. without thatch underlay,
then the standard rating may be applied.
If the roof is made of another material, we must be advised of this. We reserve the right
whether we want to insure it or not as well as the rates and terms that should be applied to
the risk. These risks must be surveyed before we go on risk.
5.8.2
Unoccupancy (Accommodation Risk)

Premises that are left unoccupied for a period greater than 60 days per annum

Refer premises left unoccupied for more than 7 days within first 30 days of
inception. This should be viewed as accommodation business and referred to
Personal Technical Underwriting for consideration and the imposition of terms
in view of the increased exposure in respect of theft and/or malicious damage,
such as people going on holiday and taking out insurance
In these cases the following clause will be applied (clause no to be advised)
Home and outbuildings unoccupied for longer than 60
days Clause (Householders)
You must pay an additional excess of R2 500 for each and
every claim as a result of:

loss or damage arising from theft or attempted theft
where such theft or attempted theft is accompanied by
forcible and violent entry or exit from the home and
outbuildings whilst unoccupied;

loss or damage arising from malicious damage by any
person whilst the home and outbuildings is unoccupied.
The home and outbuildings must be situated at the risk
address shown in the schedule.
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Applies when:
Holiday home = No
and
Unoccupied for more than 60days =
Yes
and
Hired or let out = No
Please note: Cover for theft and
attempted theft is always subject
to forcible and violent entry and
exit from the home and
outbuilding when unoccupied
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HOUSEHOLD GOODS SECTION

Holiday homes
Holiday homes must be supported by either the Household Goods or
Houseowners of the primary residence.
-
If not supported with the primary (main) residence, the system will
generate a referral for Personal Technical to review
-
If supported by the primary (main) residence; then the following clause will
be applied automatically (clause no to be advised)
Holiday Homes Clause (Householders)
You must pay an additional excess of R2 500 for each
and every claim as a result of:

loss or damage arising from theft or attempted theft
where such theft or attempted theft is accompanied
by forcible and violent entry or exit from the home
and outbuildings whilst unoccupied;

loss or damage arising from malicious damage by
any person whilst the home and outbuilding is
unoccupied.
The home and outbuildings must be situated at the risk
address shown in the schedule.
5.8.3
Applies when:
Holiday home = Yes
and
Unoccupied for more than 60days
= Yes or No
and
Hired or let out = Yes or No
Please note:
Cover for theft and attempted
theft is always subject to forcible
and violent entry and exit from
the home and outbuilding when
unoccupied
Homes hired or let out premises
5.8.3.1 The hired/ let out must be supported by the main residence. These risks will
create a referral and will be sent to Personal Technical Underwriting
The following questions should be asked if requested to insure contents of
a home hired or let out:

Who is renting the premises?

What is the relationship between the renter and the owner?

What security is available?

Why is the owner renting out including contents and for what reason?
 Who insures the building?
In these cases the following clause will be applied automatically (clause no
to be advised)
Home and Outbuildings hired or let out
(Householders)
You must pay an additional excess of R5 000
for each and every claim as a result of:

loss or damage arising from theft or
attempted theft where such theft or
attempted theft is accompanied by
forcible and violent entry or exit from the
home and outbuildings whilst
unoccupied;

loss or damage arising from malicious
damage by any person whilst the home
and outbuildings is unoccupied.
The home and outbuildings must be situated
at the risk address shown in the schedule.
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Applies when:
Holiday home = No
and
Unoccupied for more 60 days = No
and
Hired or let out = Yes
Please note:
Cover for theft and attempted theft is always
subject to forcible and violent entry and exit
from the home and outbuilding when
unoccupied
Final July 2014_v1
HOUSEHOLD GOODS SECTION
Note:
5.8.3.2
5.8.4
there is no limit to the number of houses insured under a policy,
provided they are owned by the insured and are used for private
purposes only
Swallows
The Western and Eastern Cape area have many clients that own holiday
homes and are resident in South Africa for the summer months, and then
reside overseas during their summer months. These clients are referred to
as “Swallows” and terms and conditions are imposed as per the above
noted clauses. The excesses applied however must be R7500. An
underwriting note should be applied noting that this client is a “Swallow”
Renovations
When any alterations or building construction takes place at the insured premises,
full details of the alterations must be obtained i.e.
•
Type of alterations;
•
Period of alterations;
•
What precautions are taken to safeguard the household goods against any loss
or damage?
Note: if the policyholder does not supply us with the information as mentioned above, it is
not a problem because the policy wording has now includes the conditions that
would apply when renovations are being undertaken at the insured premises, as
follows:
We do not compensate you for loss or damage by theft or attempted theft unless
there are visible signs of forced entry into or exit from the home or outbuildings while
the Private Home under goes any renovations or structural building alterations.
If the insured has to rent another residence as a result of renovations to their
own home, there is no cover in terms of the Household Goods section for loss of
rent
5.8.5
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Moving Household Goods to a new Home
Cover in terms of the allsure policy wording is granted for moving of household
goods only when professional movers are moving the goods. Professional movers
can be classified as registered companies whose main line of business is the moving
of goods. There would be no cover in terms of the policy wording if the policyholder
moves his/her own household goods. If this is the case and cover is required then
the policyholder can contact the Marine Department and arrange a once off transit
policy.
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HOUSEHOLD GOODS SECTION
5.8.6 Household Goods in Storage
5.8.6.1 Commercial storage
We automatically cover household goods in a commercial storage facility for
theft or attempted theft. If additional cover is required then it would have to
be referred to Personal Technical Underwriting. A separate risk location
must be added for the household goods in storage, which will cover the
goods as per the “Insured events” in the policy wording. The following
information would be required to enable an informed decision to be made
whether to insure this type of risk:
 Whether the household goods kept on pallets
 What security is available at the storage facility
 Construction of premises
 Description of how the goods are stored i.e. in sealed boxes or containers
etc.
 If possible, an inventory or list of items stored at storage facility
 Advise who has access to the goods at the storage facility
 Duration of storage to be given
Please ensure that you have the above information before contacting
Personal Technical Underwriting
5.8.6.2 Private storage facilities
We will consider covering household goods stored in private storage i.e.
locked garage etc., however this must be referred to Personal Technical
Underwriting and the following information will be required. A separate risk
location must be added for the household goods in storage, which will cover
the goods as per the “Insured events” in the policy wording. The following
information would be required to enable an informed decision to be made
whether to insure this type of risk:
 What security is available where the goods are being stored?
 Description of how the goods are being stored i.e. sealed boxes or
containers etc.
 Are the goods stored separately from other goods?
 Who has access to the storage facility?
 The duration of the storage will be required?
 Construction of the storage facility will be required?
Please ensure that no new business is accepted whilst the household
goods are in storage if the insured has had no previous insurance.
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5.8.7 Risks 500 meters of shoreline, river, lake or dam
Risks located in low lying areas, and close to water can run the risk of flooding and
care should be taken before accepting this kind of risk. All requests must be referred
to Personal Technical Underwriting for consideration. If accepted, cover for these
risks will be subject to a survey.
5.8.8 Surveys
In respect of any household goods item, a survey of the risk may be required in the
following circumstances:

If the residence has suffered more than 3 theft/storm claims in the last 5
years
This survey is to determine why the losses keep on occurring. It would highlight
the location of the premises as well as the protections or lack thereof

following a loss
In terms of large burglary/theft/armed hold-up claims, and/or storm damage
claims in respect of household goods cover, a copy of the assessors report must
be obtained to establish if there are any recommendations, regarding the security
or construction of the premises and the like and if necessary arrange for a survey
to be carried out

the residence is on a small holding / plot
This survey would highlight the remoteness of the property, the area,
construction and protections from a fire or theft point of view
It would also highlight the adequacy of the protections as well as to determine
the physical location of the premises compared to the surroundings

the limit of compensation for household goods item exceeds R 1000 000
This survey is to highlight the adequacy of the protections as well as any articles
of high value

main construction is not brick, stone or concrete with slate, tiles, concrete,
asbestos or metal roof
This survey would determine the construction of the premises as well as the
protections from fire, storm and theft. It would also give us a clear indication as to
whether we would like to insure the property and impose the correct rates, terms
and conditions

where the residence is situated within 500 meters of water i.e. dams, rivers,
canals
This survey is to determine the flood risk. It would also give us a clear indication
as to whether we would like to ensure the property and impose the correct rates,
terms and conditions

In any other instance where required by Mutual & Federal
Where surveys are deemed necessary and we are already on risk or it is a post loss
survey, liaise with the Portfolio Manager so as to ensure that the Broker is advised
accordingly.
If recommendations are given following the survey, the policyholder must be given
30 days written notice to implement them. The policyholder must be advised that if
the recommendations are not implemented, punitive terms and conditions will apply.
These need to be specifically mentioned.
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5.8.9
Occupants Liability / Away Risk
There is cover in terms of Occupants Liability under this section for any liability
incurred by the insured at the private residence. For example, a guest sitting on a
chair that breaks and they are injured – the insured could be held legally liable for
medical costs and expenses incurred as a result of the fall.
However, liability incurred by the insured away from the private residence is covered
under the Personal Liability section, which is automatically included if household
goods are insured.
5.8.10 Minimum/Maximum limits
There is no longer a minimum sum insured however there is a minimum premium.
The minimum premium will depend on the risk profile and this is automatically built
into the TIA system.
Risks with a sum insured exceeding R20 million are automatically referred to
Personal Technical Underwriting via the TIA system for authorisation. Rates, terms
and conditions could be imposed on these risks. In certain cases a survey could be
requested and cover would be subject to the recommendations of the surveyor.
5.8.11 Policyholder name
In instances where property such as household goods, buildings or motor vehicles is
in the name of a company or closed corporation, the policy must be issued in the
name of the individual and the interests of the company or closed corporation noted.
By doing this we do not, for example, pick up liability cover attaching to the company.
5.8.12 Household Goods Claim Free Group (CFG)
We no longer have the concept of claim free group on our household goods and
Motor sections. (Effective Allsure upgrade 2012)
Claims experience is a more predictive factor for individual risk profiling. We will use
the number of claims in the past five years to provide an adjustment for claims
behaviour. Unlike claim free group, the losses will not be reinstated, but the
behaviour will be adjusted at anniversary based on claims experience during the
indicated period.
5.8.13 Household Goods section Theft in Temporary Residence
We compensate you for loss or damage to household goods caused by theft or
attempted theft from a building you are temporarily living in.
Explanation
This extension provides cover for items kept in a hotel room, guest house or lodge
as well as property for students within a residence whilst temporary studying.
5.8.14 We do not compensate for theft or attempted theft from the home or outbuildings
while on show, unless there are visible signs of forced entry and exit from the
home and outbuildings.
Explanation
Valuables must be locked up whilst a house is on show. Due care must be taken by
the policyholder.
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5.8.15 Household Goods section Valuation of Jewellery and Watches
You must give us a professional valuation certificate for all insured jewellery and
watches; refer to the attached “Insured Events” for the limit. This valuation must have
been done before the loss or damage.
Explanation
Professional valuation certificates not only proves the quantum of the loss, but also
provides proof of ownership.
5.8.16 Household Goods section Proof of Ownership
The insured must give us acceptable proof in South African Rand that the insured
owned an item, or acceptable proof of its value, refer to point 4.6.1 of the policy
wording.
Explanation
Proof that the insured owned an item is required. It should be noted though that
proof of ownership and/or value is still required at claims stage as reflected under the
General Terms, Conditions and Exclusions section of the policy.
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6.
Note: we have only included extracts of the policy wording; however please refer to your full
policy wording in the event of any queries
What we insure
 Full cover including Subsidence
Cover is provided on an Insured Events basis. (See Subsidence and Landslip explanation
below).The cover code is reflected as “Fullc” on the TIA system

Full cover excluding Subsidence
Cover is provided on an Insured Events basis. The cover code is reflected as “Fulle” on the
TIA system. A list of areas is available where subsidence cover cannot be granted.

Limited Cover (Fire & Perils only)
Where clients do not require comprehensive cover for their household goods there is limited
cover available at a reduced premium. This option excludes cover in respect of all theft and
accidental damage. Compensation for liability is included. The cover code is reflected as
“Restc” on the TIA system. No discounts are to be given when this type of cover is
requested.
If limited cover in respect of Fire and Perils cover is selected, the motor cover, if
applicable, will be deemed to be unsupported. No discounts are to be granted
under the Household Goods section.
Herewith a brief description of the abovementioned covers (please refer to the allsure policy
wording for more detail, if required):
4.3.2 Full cover
Loss of or damage to household goods caused by an Insured Events. The goods must
belong to the insured and must be the insured’s responsibility and must be used for the
insured’s own private purposes including;
4.3.2.1 Goods in the insured’s home and outbuildings up to the limits shown in the
schedule, (see limits on the attached “Insured Events” document), for example:
 personal belongings, such as clothes, handbags etc.
 equipment and appliances, such as audiovisual, vacuum cleaners, fridges etc.
 furnishings
 fixtures and fittings that belong to you as the tenant, not the owner of the
private home;
 outdoor and garden items;
 money and other negotiable instruments such as cheques
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4.3.2.2 Business goods and equipment up to the limit shown in the schedule in any 12month period. These goods and equipment must be kept inside the home and
outbuildings. Examples include:
 computers, laptops, printers, scanners and software
 office furniture
Note: This cover is intended for the policyholder who operates a low risk type
business from home, for example an Accountant. Bed and Breakfasts type
risks are excluded from the allsure policy and should be insured under a
commercial type policy. Cover is provided for small non-hazardous
businesses at the insured’s residence.
The intention is to cover business equipment excluding stock. An
example where we would provide this type of cover would be an estate
agent where computers, fax machines, desks and chairs would be
covered. Manufacturing machinery would not be covered. Stock in trade
is excluded. Refer to the policy wording “4.4 what is not insured” and
"4.4.1.6" stock-in-trade that you own or are responsible for” i.e. cover for a
spaza shops are excluded.
4.3.3 Insured Events – damage to the insured property caused by
4.3.3.1
Fire
Definition of fire- “actual combustion or ignition,
which is accidental in origin and not in the place where
it intended to be”. Fire is a word we use to describe the
combustion or ignition of material. Arson is the
deliberate setting of a fire and damage arising from
arson is insured, unless set by the insured, is still
accidental and hence covered. Damage caused as a
direct consequence of fire is considered to fall within
the scope of fire as well, for example:
 damage caused by the water to extinguish a fire
 damage caused by the firemen whilst extinguishing
the blaze
 property damaged or destroyed to prevent the fire
spreading
 smoke damage to goods
 damage caused by the collapse of the walls of
burning buildings.
Explosion
Lightning
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Definition of explosion – “an explosion is a sudden
increase in pressure surrounding air caused by
sudden and violent expansion of a substance and
usually occupied by a massive release of chemical
energy. Put in similar terms, an explosion is a
“shattering” caused by the sudden production or
release of a large volume of gas and/or vapor.
Explosions can arise from any sources such as gas
canisters or the mixing of different chemicals”
Definition of lightning - lightning is a form of visible
electrical discharge between rain clouds or between a
rain cloud and the earth. The discharge is seen in the
form of a brilliant arc, sometimes several kilometers
long, stretching between the discharge points.
Lightning usually strikes the highest feature above the
ground, but can run or jump to adjacent objects, such
as houses, power lines or even people or animals.
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Lightning strikes can enter the insured’s home through
the electrical circuitry. It is commonly found that
lightning damage occurs mostly to audio equipment
and electrical equipment, such as microwaves, fridges,
washing machines, television sets etc.
4.3.3.2
Malicious damage except for loss or
damage:

4.3.3.3
caused by someone living in the Home or
Outbuildings
Storm, flood, wind, water, hail or snow
except for loss or damage caused by or to
any of the following:

Property in the open unless the
property is designed or intended to
operate in the open;

Any process which uses or applies water;

Deterioration, wear and tear or any
gradually operating cause;

Rust, corrosion or mildew;
Definition of Malicious damage- “intentional wrongful
damage to the property of another". The damage must
be intended and without the belief that it is in any way
lawful. A person who negligently damages a private
dwelling by driving into it because of not making a
corner cannot be charged with malicious damage to
property because there was no intention of damaging
the dwelling”.
Definition of Storm - “storm is described as a violent
weather condition or any atmospheric disturbance
involving conditions of thunder, strong wind, hail,
heavy rain or snow, either singly or in a combination".
Definition of Flood – “flood is defined as inundation
of land by the rise and overflow of a body of water.
Floods occur most commonly when water from heavy
rainfall, from melting ice and snow or form a
combination of these exceeds the carrying capacity of
the river system, lake or ocean into which it runs.
Usually the combined flow of several water-swollen
tributaries causes flooding along a riverbank or
shoreline”.
Definition of Wind - “wind is air moving, sometimes
with considerable force, from an area of high pressure
to an area of low pressure. Wind speed at times
reaches storm strength and the strongest gust can lift
the level to hurricane or tornado proportions.”
Definition of Water - Accidental discharge or overflow
of water or steam from within a plumbing, heating, air
conditioning, or automatic fire-protective sprinkler
system, or from a household appliance. Water
damage can originate by different sources such as
broken dishwasher hose, washing machine overflow,
dishwasher leakage, broken pipes, clogged toilet,
leaking roof, plumbing leaks, rain and bad weather
such as snow, rain and floods. However under this
section storm, flood, wind, hail and snow are insured
as separate insured perils. Water is an insured peril
under this section which covers the policyholder
against sudden and accidental water damage. It does
not cover damage resulting from the policyholder’s
negligence or failure to maintain home repairs. For
example, the policyholder is heading out on vacation
and his daughter goes the bathroom one last time
before the long trip. Unfortunately, on the last flush of
the toilet the handle got stuck and the toilet kept
running for the duration the policyholder was on
holiday. On returning from holiday the policyholder
finds practically his entire house ruined by water
damage. This would be covered as it is considered as
accidental and a sudden discharge of water.
Definition of Hail – hail forms when tiny clumps of ice,
kept aloft by strong up draughts, get blown through
freezing thunderclouds until they are heavy enough to
fall to earth. Hailstones can be so large that they break
the glass of windows and damage the furniture inside
the residence.
Definition of Snow- “Snow is precipitation (a kind of
water that falls from the sky as part of the weather), in
the form of crystalline water ice, consisting of a
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multitude of snowflakes. Since it is composed of small
rough particles it is a granula material Damage that
can be caused to household goods as a result of snow
for example, the roof of a private residence can
collapse under heavy snow, as a result of the roof
collapsing the snows falls through the ceiling and
damages the policyholder’s Household Goods. Not
only is there impact damage as a result of the collapse
of the roof but there would also be water damage as a
result of the snow.
Definition of Earthquake – “is the shaking of the
earth’s surface caused by the movement of the earth’s
rocky outer layer. Earthquakes occur when energy
from inside the earth, usually in the form of strain in
rocks is released. The released energy is then
transmitted to the earth’s surface by seismic waves.
Earthquakes are measured with seismographs.
Earthquakes, when below sea level can cause
tsunamis (tidal waves). Earthquakes occur on plate
boundaries. The movement beneath the plates in the
mantle creates currents and thus causes the plates to
shift. This movement causes friction eventually
resulting in the parting of the plates or one plate being
pulled under. Due to the effects of an earthquake,
rooftops and walls may collapse damaging the
household goods inside the premises.
4.3.3.4
Earthquake
4.3.3.5
Bursting, leaking or overflowing of pipes,
water apparatus or oil-fired heating
apparatus
Examples of water apparatus are baths, geysers,
pipes and sinks. The resultant damage as a result of
the overflowing or bursting of a water apparatus or
fixed oil-fired heating apparatus is covered under this
section.
4.3.3.6
We do not compensate you for damage to
the apparatus or pipes themselves
Example – the geyser in the roof of the insured’s
private residence bursts. The water seeps through the
roof, down the walls and into the lounge area. The
water falls onto the policyholder’s wall unit and the
lounge suite. As a result the wood of the wall unit
swells and cannot be repaired. Furthermore, the
lounge suite material begins to rot and must either be
replaced or re-upholstered.
4.3.3.7
Loss of or damage to Household Goods
caused by impact to the Home and
Outbuildings
The cause of the impact is not defined in the
Household Goods section however examples of
impact are:
Vehicles: Vehicles crashing into a home destroying
valuable furniture.
Falling trees: If a tree falls over as a result of old
age/rotting and damages a residence there will be
cover. Remember if a tree falls over as a result of
another insured peril, for example a storm, the
proximate cause would be the storm and not impact.
Also this is for falling trees, not damage caused by
roots and growth of the tree – for example if the roots
damage the paving around your home there would be
no cover.
Only the resultant damage is covered in
terms of this section and excludes the damage caused
by impact to the private residence which would be
covered under the Houseowners section.
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4.3.3.8
4.3.3.9
Gradual sinking of land (subsidence), and
landslip of the land supporting the Home
and Outbuildings, as shown in the
schedule except for loss or damage
caused by or made worse by:

faulty design, insufficient compacting
or filling, poor construction;

removal or weakening of support

structural alterations, additions or
repairs

surface or subterranean excavations
except those performed during mining
operations;

normal settlement, shrinkage or
expansion;

contraction or expansion of clay and
similar soil types due to its moisture or
water content.
We compensate you for loss or damage to
your Household Goods caused by any
Insured event excluding theft or attempted
theft while the insured property is:

In any action suit or other proceeding where we allege
that, by reason of the provisions of this Insured event
any damage is not insured by this insurance, the
burden of proving the contrary shall rest with the
policyholder.

in a building you are temporarily living in;

in a building you are employed in;

inside the building of a business where your
household goods are being made up, altered,
renovated, repaired, cleaned or dyed;
4.3.3.10 We compensate you up to the limit shown
in the schedule.
Other loss or damage (Additional Benefits)
The limits applicable are reflected in the policy schedule. (Refer to the attached
“Insured Events” for the limits of compensation)
 Fire brigade charges
We compensate you up to the limit shown in the
schedule for the reasonable costs that the fire
brigade charges you for putting out a fire at the
home and outbuildings.
 Loss of water by leaking
We compensate you for the costs of water lost
from leaking pipes in the home, outbuildings and
on the grounds, if you are responsible for paying
these costs.
We only compensate you if the water reading is
above the average of the previous 4 readings by
50% or more.
If you discover a leak – either by physical evidence
or from an abnormally high water bill – you must
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immediately take steps to repair the pipes or we
will not compensate you for the costs of the loss of
water.
You can claim for a maximum of 2 separate
incidents of this kind in each 12-month period.
We compensate you up to the limit shown in the
schedule.
We do not compensate you for water lost from:
 leaking taps, geysers, or toilets;
 swimming pools or leaks in their inlet or outlet
pipes;
 leaks that happen when the home or
outbuildings are not occupied for more than 30
days.
 Cost of clearing debris after an Insured event
 Loss or damage from theft or attempt theft
We compensate up to the limit shown in the
schedule for the reasonable cost of removing
debris from the home and outbuildings and
grounds after loss or damage to the household
goods caused by an Insured event
From the home and outbuildings (note there is a
limit of compensation (refer attached “Insured
Events” should there be no visible signs of forced
entry or exit)
A building you are temporarily living in. (Note This
extension provides cover for items kept in a hotel
room, guest house etc. as well as property for
students within a residence whilst temporary
studying);
A building you are employed in, only up to the limit
shown in the schedule unless you can prove that
there are visible signs of forced entry or exit. We
do not compensate you for theft or attempted theft
of jewellery, watches, mobile communication
equipment, iPod, laptops, palmtops, electronic
notebooks and GPS devices from a building
where you are employed;
A commercial storage facility where you have
deposited household goods for safe keeping or at
any hotel, guesthouse, club or bank safe;
Inside the building of a business where your
household goods are being made up, altered,
renovated, repaired, cleaned or dyed, if there are
visible signs of forced entry or exit, up to the limit
shown in the schedule.
 From the grounds of the insured’s Home and
Outbuildings
We compensate you up to the limit shown in the
schedule for loss from theft of the following goods
if they are stolen from the grounds of your home
and outbuildings:


 While moving Household Goods to a new Home
Page | 20
laundry;
garden and swimming pool furniture and
equipment, pool safety nets and covers.
We compensate you up to the limit shown in the
schedule for household goods for loss from theft,
fire, collision or overturning of the vehicle while
professional movers are moving them when you
permanently move home.
Final July 2014_v1
HOUSEHOLD GOODS SECTION

While you are transporting Household Goods
We compensate you up to the limit shown in the
schedule for the following:
 theft of household goods if they are being
moved to or from a commercial storage
facility or bank safety deposit facility;


theft of household goods if you are
transporting the household goods to or
from any place of purchase, repair or
renovation. There must be visible signs of
forced entry or exit from the vehicle;
loss or damage to your household goods
while you are taking them to or from any
place of purchase, repair or renovation.
We only compensate you if the loss or
damage is caused during transit by fire,
collision or the motor vehicle carrying the
goods overturning.
 Trauma counselling after a violent event
We compensate you up to the limit shown in the
schedule if you or your domestic staff needs
professional counselling after being a victim of
violent theft, attempted theft or hold up.

We compensate you up to the limit shown in the
schedule for the reasonable cost of replacing
trees, shrubs and plants on the grounds of the
home and outbuildings. We compensate you only
for loss or damage caused by:
Loss or damage to the garden

fire;

firefighting;

explosion;

impact by vehicles, aircraft, other aerial
devices or other objects dropped from the air;

malicious damage.
We do not compensate you if theft or attempted
theft causes the loss or damage

Loss of or damage to guests property
We compensate you up to the limit shown in the
schedule for household goods and personal
belongings of a guest living with you temporarily, if
they do not have any other insurance.
To receive compensation, the Insured event must
have taken place at the home and outbuildings.
This excludes money and negotiable instruments
(for example, cheques).

Loss of or damage to domestic staff’s property
We compensate you up to the limit shown in the
schedule for household goods and personal
belongings of your domestic staff.
To receive compensation, the Insured event must
have taken place at the home and outbuildings.
This excludes money and negotiable instruments
(for example, cheques).

Loss or damage to documents caused by an
Insured Event
We compensate you up to the limit shown in the
schedule for the cost of materials and labour to
replace personal documents lost or damaged by
an Insured event.
We do not compensate you for the value that you
attach to the document’s content
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HOUSEHOLD GOODS SECTION

Loss or damage to Household Goods in
Outbuildings not made of brick, stone or
concrete with slate, tile, metal, concrete or
asbestos roof

Employing a security guard

Keys, locks and electronic security devices
We compensate you up to the limit shown in the
schedule for your household goods while in the
Outbuildings which are not made of brick, stone or
concrete with a slate, tile, metal, concrete or
asbestos roof. Loss or damage caused by theft
must have visible signs of forced entry or exit.
We compensate you up to the limit shown in the
schedule for the reasonable cost of employing a
security guard after loss or damage from an
Insured event.
We compensate you up to the limit shown in the
schedule for reasonable costs to repair or replace
lost or damaged:

keys, including card keys;

locks;

remote controls
We compensate you up to the limit shown in the
schedule only if you occupy the home and
outbuildings and need the above devices for doors,
windows, safes or alarms for that home and
outbuildings

Alternative accommodation and rent
If the home or outbuilding is not fit to live in
because of loss or damage from an insured event,
we compensate you for either of the following:

the rent which you pay as the occupier of the
home or outbuilding

alternative accommodation of similar value and
location as the home or outbuilding
We only compensate you for a period reasonably
needed to make the home or outbuilding fit to live
in again.
We do not compensate you for more than 25% of
the limit of compensation for household goods.

Medical and veterinary expenses
We compensate you up to the limit shown in the
schedule for medical and veterinary expenses for
accidental bodily injury under the following
circumstances:
 domestic animal you own injures another
person
 injury to a guest or visitor arising from any
defect in the home and outbuildings
 injury to domestic staff while working for you

a road accident injury to a domestic animal
that you own
We do not compensate you if the injured person or
animal is covered by any other insurance, including
medical aid

Accidental death from injury in the Home and
Outbuildings
We compensate you up to the limit shown in the
schedule if you suffer an accidental bodily injury in
the home and outbuildings and you die within 90
days as a direct result of the injury.
There are different limits of compensation
depending on your age.

Accidental damage to audiovisual equipment
Page | 22
We compensate you for accidental damage to any
of the following household goods:
 television sets, video recorders, decoders,
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HOUSEHOLD GOODS SECTION
satellite dishes or aerials;

sound reproduction equipment, DVD players
including Blu-ray players;

proximas and multi-media projectors.
Note: loss or damage caused by power surges is
excluded as this cover is available under the
Accidental Damage option, if selected, and
additional premium is paid. Loss or damage
caused by mechanical and electric breakdown is
excluded as cover is available under the
Mechanical and Electrical Breakdown section.
Note: we do not compensate the insured for
spoiling because of load shedding by a power
supply authority, unless the power cut is longer
than 24 hours.
We do not compensate you for loss or damage to:

Household goods that are not in the home and
outbuildings;

damage caused by mechanical or electric
breakdown;

audiovisual equipment caused by power
surges.

Accidental damage to glass
We compensate you for accidental damage to
mirrors or sheet glass in or on furniture or on an
appliance.

Accidental spoiling of fridge and freezer contents
We compensate you up to the limit shown in the
schedule for the accidental spoiling of the contents
of your fridges or freezers in your home and
outbuildings if the spoiling results from either:

breakdown or accidental damage to the fridge
or freezer;

failure of the public power supply.
We do not compensate you for:

damage to fridges or freezers themselves;

spoiling because of load shedding by a power
supply authority, unless the power cut is longer
than 24 hours;


Accidental damage to domestic telephone
instruments
spoiling that has happened because you have
not paid for or bought sufficient power or fuel.
We compensate you up to the limit shown in the
schedule for each domestic telephone instrument
accidentally damaged in the home and
outbuildings.
We do not compensate you for damage to:

cellular telephones;

mobile communication equipment.

Damage by wild baboons or wild monkeys
We will compensate you up to the limit shown in
the schedule for loss or damage to household
goods inside your home and outbuildings caused
by wild baboons or wild monkeys

Householder’s Liability
It is important to remember that this cover is a
premises risk cover and there is no cover for
liability arising away from the home and
outbuildings under this section
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
Liability as occupant of the home and
outbuildings

Liability as a tenant of the home and
outbuildings
Compensation includes:

The amount the insured is liable for;

Legal costs of the other person that the
insured is liable for;

Costs that the insured incurs with our
permission to settle or defend the claim
against the insured.
Accidental Damage (optional)
The cover under this section can be extended to cover Accidental Damage at an additional
premium. The following limits of indemnity are available:
 R10 000
 R25 000
 R50 000
 R100 000
It is important to note there is no limit per item.
If this cover is selected then the relevant limit will reflect on the policy schedule. Included in the
accidental damage cover is damage caused by power surges. There is an excess that applies to
this extension in the event of a loss.
There are exclusions that apply if this cover is selected. Mutual & Federal will not compensate any
loss or damage caused by:
 wear and tear, rust, mildew, corrosion or decay, moths, vermin or other insects or their larvae or
the insured’s own domestic pets;
 depreciation or any gradual operating cause, process of dyeing, cleaning or renovating;
 the action of light or climatic condition;
 electronic, electrical and mechanical breakdown, breakage or failure;
 over winding of items such as clocks;
 cracking, scratching, denting or chipping of furniture, glass, glassware, jewellery or other brittle
articles;
 confiscation or detention by any process of law;
 deliberate power cuts or load shedding;
 consequential damage of any nature.
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Final July 2014_v1
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There are certain items that are found in the home and outbuilding which would not be
covered under accidental damage cover, as follows:
 Garden equipment, furniture or tools, equipment for a pool or a pond. If higher limits are
required for garden furniture, contact Personal Technical Underwriting in this regard. All
Risks cover may not be granted on swimming pool and garden furniture
 Sporting equipment if it was damaged whilst in use
 Firearms
 Portable computer equipment, cellular phones, mobile communication equipment, handheld portable telephones, videos, audio tapes, compact discs and DVDs. For Example Due to cellphones being damaged within the home, especially relating to cellphones being
dropped into baths, they now have to be specified under the All Risks section
 Personal belongings
 Loss or damage covered by any manufacturer’s guarantee, purchase agreement or service
contract
Full cover excluding Subsidence
Same cover provided as per Full cover above, with the exclusion of loss or damage caused by
subsidence.
Limited Cover (Fire & Perils only)
M & F will only compensate the insured for the following loss or damage:
 Goods in the insured’s home and outbuilding up to the limit shown in the schedule
 Business goods and equipment up to the limit shown in the schedule
 Loss or damage by Insured Events (refer above insured events listed);
Other loss or damage;
 fire brigade charges;
 loss of water by leaking
 cost of clearing debris after an insured event;
 Householders Liability
Note: The Insured will not be insured for any other events or items listed under the heading
‘Other loss or damage’ and ‘Loss or damage from theft or attempted theft’
If limited cover in respect of Fire and Perils cover only is selected under the Household
Goods section, Motor will be deemed to be Unsupported. No discounts are to be granted
in respect of the Household Goods section
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4.4
What we do not insure under the Household Goods Section
 theft of money and negotiable instruments, negotiable instruments mean elements of
negotiability; the bill of exchange, cheque and promissory note; parties to bills,
cheque's and notes, unless they are stolen from the home and outbuildings and
there are visible signs of forced entry or exit;
 theft or attempted theft from the home and outbuildings while lent, let, sub-let unless
there are visible signs of forced entry or exit from the home and outbuildings;
 theft or attempted theft from the home and outbuildings while on show, unless there
are visible signs of forced entry or exit from the home and outbuildings;
 loss of or injury to animals, other than that specifically described in this section. Refer
to the policy wording “Medical and Veterinary expenses”.
 loss of or damage from theft or attempted theft of:
• more than one gold coin, stamp and coin collections as gold coin, stamps and coin
collections are more specifically insured under an All Risks section;
• cell phones as they are more specifically insured under an All Risks section;
• motor vehicles including their fitted accessories, as motor vehicles are more
specifically insured under a Motor section;
• caravans and trailers including their fitted accessories, as they are more specifically
insured under a Motor section;
• air or watercraft and their fitted accessories and equipment but not a surfboard or
paddle ski. Aircraft insurance is a more specialised field of insurance.
 loss of or damage arising from:
• wear and tear, rust, mildew, corrosion or decay;
• depreciation or any gradual operating cause such as rust;
• the action of light or climatic conditions;
• electronic, electrical or mechanical breakdown, breakage or failure;
• moths or other insects or their larvae, vermin, rodents or your own domestic pets.
 stock-in-trade that the insured owns or is responsible for, as this should be insured
under a commercial policy;
 loss of or damage to household goods that are more specifically insured elsewhere in
this policy. The reason behind this is that such items may be more appropriately
insured under a policy more suited to the insurance requirements for that specific
item.
 loss or damage or breakage covered by a manufacturer’s purchase agreement,
guarantee or service contract;
 loss or damage by theft home or outbuildings while the private home under goes any
renovations or structural building alterations.
We do not compensate the insured for theft or attempt theft of jewellery, watches, mobile
communication equipment, iPod, laptops, palmtops, electronic notebooks and GPS devices
from a building where the insured is employed, as these items must be specified under the
All Risks section.
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HOUSEHOLD GOODS SECTION
4.5
Compensation – How M & F compensates the insured for loss of or damage to
household goods;
The compensation will be based on the replacement value of similar new goods at the
time of the loss or damage. The limit of compensation is shown in the policy
schedule.
Mutual & Federal has the option to:
 have the item repaired;

pay the insured in cash in lieu for the damage;

replace the items via one of Mutual & Federal approved suppliers.
The insured must give Mutual & Federal acceptable proof in South African Rand that
he/she owned an item or acceptable proof of its value if Mutual & Federal asks for it.
Professional valuation certificates not only prove the quantum of the loss but always
provide proof of ownership.
Note: For claims for loss of or damage to precious metals and stones, jewellery,
watches, furs, paintings, rugs and carpets, only up to one-third (33.33%) of the
limit of compensation for household goods is compensated. For example, the
insured has a burglary and jewellery to the value of R300 000 is stolen. The
sum insured under the insured Household Goods section is R500 000, therefore
Mutual & Federal will only pay 33.33% of R500 000 = R166, 650.
4.5.5.
Excess
An excess is the first amount payable by the insured which he/she will be expected to
pay in the event of a claim. The excess amount is shown in the policy schedule for
this section.
4.6
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Special conditions
The Insured must give proof of ownership

must give us acceptable proof that you owned an item, or acceptable proof of its
value, if we ask for it.

must give proof of valuation of jewellery and watches

When you claim, you must give us a professional valuation certificate for all insured
jewellery and watches. This valuation must have been done before the loss or
damage.

If you do not have this certificate, your claim will be limited to the limit shown in the
schedule for each item.
Final July 2014_v1
HOUSEHOLD GOODS SECTION
You must keep jewellery and watches in a safe
 You must keep jewellery and watches over a certain value in a safe. This is called the
‘safe warranty limit’.

If you are not wearing the jewellery or watch, you must keep it in a securely locked
wall- or floor- mounted safe. The keys to your safe must also be kept away, secured,
and hidden from sight. We will not compensate you for loss or damage caused by
theft or attempted theft for more than the ‘safe warranty limit’ as shown in the
schedule if you do not lock the item in a safe while you are not wearing it.
Pairs and sets
 We do not compensate you for any additional, special value that an item has
because it is part of a pair or set. We only compensate you for the proportionate
value of the part of the set that is lost or damaged.
Security measures
The policy wording states the following with regards to the security measures required:
Burglar bars
 If the schedule states that you have burglar bars on all opening windows, we
compensate you for theft or attempted theft only if at the time of the theft or
attempted theft the burglar bars are fitted.
Security gates
 If the schedule states that you have security gates, we compensate you for theft or
attempted theft only if at the time of the theft or attempted theft all the following
conditions are met:
 the security gates are fitted;
 the security gates are locked when your home is left unattended.
Alarm system
 If the schedule states that you have a SAIDSA approved alarm system, we
compensate you for theft or attempted theft only if at the time of the theft or attempted
theft all the following conditions are met:
 the alarm system is installed;
 the alarm is fully operational and armed whenever the main home is unattended;
 the alarm is linked to a 24 hour control centre with an armed response unit; and
 when your home is left unattended, the alarm is armed for the entire home and
outbuildings and none of the ‘passive infrared motion detectors’ of the alarm
system are obstructed or bypassed.

We do not consider occupation of an outbuilding to be occupation of the home;

If you do not comply with this security measure, we do not compensate you for theft
or attempted theft of household goods.
It is important to note that the alarm warranty would only apply when the alarm fitted to
the insured premises is a SAIDSA approved alarm system
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HOUSEHOLD GOODS SECTION
Tell us if you are away for more than 60 days
You must tell us if you intend leaving your home and outbuildings unoccupied for
more than 60 consecutive days in any 12-month period so that we can adjust your
premium or change your terms, conditions and exclusions. If you do not tell us we
will not compensate you for any loss or damage while the home and outbuildings
are unoccupied. If only an outbuilding is occupied, we do not consider the home and
outbuildings occupied.
Surveys
We may ask a surveyor to survey your home and outbuildings at any time. Based on the
outcome of this survey, we may immediately do one of the following:
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
change the terms, conditions and exclusions of your insurance;

cancel your insurance;

treat your insurance as null and void.
Final July 2014_v1