General Insurance FAQs

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What factors should I consider when I insure my home?

Firstly determine the amount and type of insurance that you need. The sum insured or coverage limit of the property should equal 100% of its replacement cost. If the policy limit is less than 85% of the replacement cost of your home, any payment from the insurance company will be less than the full cost to replace your home, This is known as "Under Insurance".

Over and above the basic Fire Insurance, decide which, if any, additional coverage you want to add to your policy. For example, do you want personal possessions or household contents covered against theft or burglary?

Once you have decided on the coverage you want in your insurance policy, consult us. We will be able to help you determine if there are any gaps in coverage you might not have been aware of, we can also explain the details of the policy's exclusions and limitations.

What is the difference between "actual cash value" and "replacement cost"?

Covered losses under a personal possessions or household contents policy can be paid on either an actual cash value basis or on a replacement cost basis. When "actual cash value" is used, the policy owner is entitled to the depreciated value of the damaged property. Under the "replacement cost" coverage, the policy owner is reimbursed an amount necessary to replace the article with one of similar type and quality at current prices.

What are the advantages to using an agent/broker to purchase insurance?

By using an agent to purchase insurance, the policyholder receives more personal service. An agent with whom there is direct contact can be vital when purchasing a product and can prove absolutely necessary when filing a claim.

What is a deductible?

A deductible is the cash value amount of damages that you agree you will be responsible for if you have a claim.

Most insurance policies have a deductible which states that a portion of the amount paid for the loss will be subtracted from the amount the insurance company would otherwise pay.

Should I report all Motor accidents to the Insurer?

Yes you should. Even if the accident appears minor, it is important that you let your insurance company know about the incident. If you have an accident but don‘t report it to your insurer, you are taking a risk, even if the damage seems minor. If the other driver sues you weeks or months later, your failure to report the accident might cause your insurer to refuse to honour the policy. And even if they do honour the policy, the delay will certainly make it harder for the insurer to gather evidence to represent you.

When is a car ‘written off’ by an Insurer?

It’s up to your insurer to decide whether to pay for repairing your car or to declare it a total loss and pay you its book value. Most standard motor policies will not pay to repair a vehicle if the repairs cost more than the cash value assigned to the car. In practice, there will be little dispute about whether to repair the car if the damage is above 75% of the book value of the car. You may argue about what the pieces of the car were worth when they were assembled as a car. You’re entitled to the market price of the car you just lost. You shouldn’t get more or less than what you are due.

Why should I purchase commercial vehicle insurance for my private pick up vehicle?

This is a Kenya Revenue Authority requirement. A pick up is also categorised as a commercial vehicle in your logbook.

How do I make a claim?

Contact us or your agent for a claim form. Complete the claim form and submit it to us together with the police abstract.