The aim of this article is to highlight the difference between two major approaches to determining the insurance value for buildings. The reason why it is important to understand the difference is due to the direct consequences it has on the accuracy of the final insurance value that in turn affects and determines the monthly insurance premium you will be paying and the possibility of exposure to average, as applied by insurers in the case of a claim.
This article provides a brief account of some definitions and terminology used in the property industry. The aim is to highlight the distinction between the terms movable and immovable assets (also referred to as property).
It is important to note that insurance valuations or replacement cost valuations is not always a straight-forward process, often you might be over- or under-insured. Read more
Understanding the insurance process for when taking out insurance or when claiming
When insuring your home or office building or industrial warehouse, the basis on which you need to insure is new replacement cost. New replacement cost is what it will cost to replace your entire house or building with an equivalent or similar structure. It is important to understand the insurance process before taking out insurance or when claiming. Read more
Most short-term insurance policies are based on replacing your insured property or assets at new-for-old. This means that if an event arises that damages your property or assets, you can submit a claim to your insurer and they will repair the damage or replace the asset with the equivalent new. This is in line with the principle of placing you in the same financial position you were in directly before the event occurred. Read more
Q&A with Deon Jansen van Vuuren
Q: What is insurance?
A: Insurance is an agreement of payment by an insurer, should the insured suffer financial loss. Insurance is also a guarantee that a valid claim will be paid subject to certain terms and conditions.
Q: What does typical building insurance cover? Read more
The broken windows theory is a criminology theory introduced in 1982 by social scientists James Q. Wilson and George L. Kelling. The theory is the subject of a great many debates and criticisms, although various studies are in support of it.
Wilson and Kelling is of the opinion that crime is the result of disorder. If a window is broken and left unrepaired, passersby might conclude that little care is exercised and that there is no control. The effect of this is more broken windows that in turn sends a signal that there is no order. The theory is therefore one of norm setting and the associated signaling effect of urban disorder and vandalism leading to serious crime and anti-social behaviour.
In an urban or city environment, broken windows can be anything from literal broken windows to graffiti, public disorder, or aggressive panhandling. (Wikipedia, 2012).