Love is in the air, but what does it mean for your short-term insurance?

The latest census data revealed a long-term trend of a decrease in both marriages as well as co-habiting couples. But for many South Africans, moving in with their partner or spouse remains a very real consideration. 

A life changing decision like this comes with implications. Aside from the obvious emotional and financial aspects, there are lots of insurance matters to consider as well.

This is according to Marius Steyn, Manager Personal Underwriting (Technical) at SA’s largest insurer, Santam, who cautions that there are a few considerations every couple needs to think about when merging households. “When you move in together, depending on the nature and seriousness of your relationship, an insurer will usually consider you to be the equivalent of a common-law husband and wife. That means you can take out a policy together. There are also lots of logistics to tick off – like making sure the household contents are covered and adding another driver to your vehicle insurance, if necessary.”

Here, Marius Steyn highlights his/her check-list that every co-habiting couple should tick off:

When two become one – make sure you’re adequately covered:

“Moving in together, and the effective merging of two households, often results in a staggering amount of ‘stuff’, says Steyn. Which means you and your partner will probably need to update your household contents insurance. “If your relationship is seen as sufficiently serious (insurers look for things like how long you’ve been together living in the same home, if you’ve co-purchased furniture, etc.), then 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:

Steyn explains that the main policyholder will be paid out in the event of a claim. “It’ll then be up to him/ her to pay the additional insured person. Insurers don’t get involved in these politics and are in no way responsible if the policyholder does not pay his/her partner. So, you need to trust your partner to pay you!”

If you both have separate household contents policies with different insurers and are wondering which insurer to go with, Steyn advises that you shouldn’t just pick the lowest premium price when considering combining the risk. “Consider the benefits and excesses – what you pay and what you receive in return.”

He also recommends that you get your household contents evaluated (or do this yourselves using an Santam online calculator) so you’re certain you’re adequately covered for the replacement value of all your combined items.

When your household contents are on the move between properties, he says that there’s no need to stress – your cover won’t be cut off. “You should however notify your insurer of the new address prior to the day you move. If you have an engagement ring, for example, or other things of value you frequently take outside the house, you’ll need to separately insure these items on the all-risk section of your policy if you do not have an asset all-risk policy,” says Steyn.

It’s of vital importance to inform your insurer about all the security features present in your new home, says Steyn. Generally, there will be specific security requirements in order to qualify for burglary and theft cover.

Trouble in paradise…

It’s not commonly known, but Steyn points out that if you happen to argue and temporarily move out for a few days, taking 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,” says Steyn.

Vehicle insurance is also important:

Steyn adds that it’s important to remember to add your partner as a regular driver on your policy in the event that he drives a particular vehicle most frequently.

If it really doesn’t work out:

If, sadly, the relationship comes to an end, Steyn says that it’s necessary to then get your own policy as soon as possible, especially if you have a combined policy, but you’re not the main policyholder. “Remember, if you’re the additional insured, it’s up to your partner to pay you in the event of a claim, which could get difficult if you’re not together anymore,” he concludes.

SOURCE: https://www.santam.co.za/about-us/media-centre/personal-lines/the-moving-ins-and-outs-of-insurance-for-co-habiting/