Security Tips for this holidays

With the holiday season here we are excited and most of us is making our way to our holiday destinations however this is the time that there is a huge increase in criminal activity.” You can prevent being a victim of crime by taking the correct precautions and as the old saying goes ,rather be safe than sorry “ says Mr Hans Brits CEO of the Bestgroup.
According to Brits there are a several handy tips to insure that you can enjoy a well deserved holiday.  
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Travelling Tips for this festive season

With the December holidays  approaching, millions of South Africans will soon hit the roads on the way to their travel destinations.
According to Riaan van Wyk , Managing Director of Bestsure, increased traffic invariably leads to a higher number of road accidents, and it is crucial that people ensure they are adequately prepared for any potential risks before they set off.
Van Wyk  says that in addition to being aware of other vehicles on the road, drivers should also pay particular attention to pedestrians during this time, as research shows that a fair proportion of road fatalities occur amongst pedestrians.
Van Wyk has these useful tips for those planning to be on the roads this festive season: READ MORE

Congratulations : Bestsure received a Gold Award From Santam

 

Congratulations to Bestsure for the Santam Gold Award

in photo above from left Mr Ian Kirk( CEO Santam),Rocco Du Toit / Riaan van Wyk (Bestsure) and Saggy Pillay (Regional Manager Santam)

Would you pay more for a restaurant meal than a Will?

It would appear that some South Africans are prepared to pay a couple of hundred rands for a restaurant meal, yet are not happy to pay an expert the equivalent to draft their Will, a vital document that speaks for you when you are gone.

Recent affluent[1] and high net worth[2] market research commissioned by Glacier Fiduciary Services, a division of Glacier by Sanlam, revealed a startling disparity in the public’s understanding of the importance of having a professionally drafted Will. Furthermore, many affluent and high net worth individuals do not recognise the expertise required to draft a Will that you can trust to have the consequences you intend. The necessary area of expertise required to draft a competent Will includes not only estate planning in the narrow sense, but also marriage law and planning, insolvency law and asset protection, the intestate succession rules, the administration of deceased estates, all areas of tax law, trust law, exchange control etc.

Wills are drafted by a wide range of organisations and service providers, including attorneys, banks, accountants and financial advisers. Members of the public should ensure that the person they consult to draft their Will is properly qualified and experienced to do so. One’s Will dictates the manner in which your assets will be divided and your dependants looked after when you are not around to help them or remedy any mistakes or misunderstandings. Accordingly, anyone with dependants or with assets they wish to leave behind, needs to take the process seriously and not simply focus on getting a Will drafted as cheaply as possible, or free for that matter.

The objectives of the Glacier research were to provide detailed information about the current behaviour of its target market of affluent and high net worth (HNW) individuals with regard to Wills, family trusts, offshore trusts and estate planning advice, as well as to explore attitudes towards the concept of “free advice”.

The questions asked about Wills in particular revealed a huge disparity in market perceptions and expectations. Ninety-eight percent of respondents had a Will. However, only 33% overall said their Will was updated in the last year (39% HNW; 28% Affluent); 21% updated it one to two years ago; 21% updated it three to five years ago; and 25% updated it more than six years ago (17% HNW; 32% Affluent). Nominated executors are most commonly relatives (29%) or banks (25%). Attorneys are more commonly used by HNW individuals (22%) than affluent individuals (8%). When asked who drafted their Wills, an alarming 17% said that they had drafted their own Wills or a relative had drafted their Wills. The majority (63%) had Wills drafted by their attorneys or accountants.

The respondents were asked how much they paid for their Wills and how much they would expect to pay today. The fees paid ranged from nothing (44%) to between R15,000 and R20,000 (2%). 15% of respondents paid less than R1,000 and the balance (20%) paid between R1,000 and R15,000. Those who paid less than R1,000 are likely to fall into the category of people who have not updated their Wills for a very long time. The research also revealed a disparity between what people paid, and what they would expect to pay now. As regards what they expected to pay today – only 20% said that they expect a Will to be for free; 18% expected to pay less than R1,000; 8% between R1,000 and R2,500; 28% expect to pay between R2,500 and R5,000; and 12% expect to pay between R5,000 and R15,000.

The glaring difference between clients’ perceptions was highlighted in their answers to the following questions. Firstly, the respondents were asked why they would not expect to pay for a Will.

“I did not pay for my Will as part of the service of a private bank client and the bank will make money out of the estate when they have to wind it all up one day. However, I did expect to pay for it!”

“It is part of the bank service. Banks and all financial institutions make so much money from their clients, the least they can do is to provide a free Will. After all, it takes only one hour to ’cut and paste’ in preparation for Wills.”

“A Will should be part of the service I am being offered either by my private banker or my financial adviser. The cost of the Will should be included in the fees that I pay my private banker or financial adviser every year.”

But when the researchers asked, “How do you feel about people who are willing to pay more for a restaurant meal than a Will?” The response was very different.

“You're being stupid because you are gambling with lots of money. You don't want the family to sit with problems after you die. You get what you pay for. Cheap/free Wills are not worth the paper they are written on.”

“It would then appear as if there is no value perception to the Will. Wills usually need specific tailoring when assets are involved and the various beneficiaries and not just the run of the mill type Will. If it is simple and a standard template type of Will with no effort put into it, then it could be a modest meal. But I think it is foolhardy. I am willing to pay far more for a Will than a meal because I want proper professional advice that I can trust regarding tax consequences, asset details, etc.”

Regardless of whether you are paying R10,000 for your Will or if the cost is included in other fees you are paying to your adviser, just make sure that it is drafted by a properly qualified expert in Will drafting, estate planning and the related tax issues. Furthermore, don’t be misled into thinking that a relatively small estate necessarily requires less Will drafting complexity or is easier to wind up when you pass on, than a large estate. A R3.5 million estate with private company shares, children from two marriages and a usufruct attached to a property would be more complex than a R20 million estate with equities, cash and a house.
Article by Tanya Cohen (FA News)

Please click here should you need assistance with your will.

Security hints for this festive season

If you are thinking of going on holiday this festive season, please ensure that the following security measures are in place:
1 Make sure your alarm system is still in a working condition.
2 Press your panic button to test if your alarm system sends a message to the control room.
3 Please note that the battery of your alarm sytem has a normal lifespan of 24 months. Should your battery not have been replaced in the last 24 months, please call the technical division.

Perimeter protection:
These days, having an alarm system may not be enough. Please invest in perimeter protection such as an electric fence, beams and outdoor passives. Stop the criminal before he gets onto your property.
General security tips:
Have an automatic light switch installed, which will activate certain lights at night and switch off during the day time.
Have your post collected, if delivered at home, and stop all newspaper subscriptions.
If possible, have someone visit your premises frequently, to check if everything is still in order.
Ensure that your security company has all your contact details, in case of an emergency.

Once you have checked all of the above, enjoy your holiday and please remember to buckle up.

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Defective design or construction can cause claims rejection

Herewith an article courtesy of FA News and Abrie Janse van Rensburg, Manager, Claims, Alexander Forbes Insurance.
Homeowners should not confuse an insurance contract with a guarantee or warranty. If there is a defect in the design of your home or it is poorly constructed, or both, your insurance claims may be rejected.
"Insurance is there to protect people against any sudden and unforeseen events. It is not a contract to pay for maintenance work on your home, or to fix damage resulting from defective design, materials or workmanship" says Abrie Janse van Rensburg, Manager, Claims Alexander Forbes Insurance.
Upon receiving a claim it is standard procedure for insurers to investigate the cause. If poor workmanship, defective construction, or defective design is identified as a significant factor in causing the damage, the claim may well be rejected.
For example, if your boundary wall was defectively built your insurer will be entitled to reject the claim. This would remain the case even if the event that destroyed the wall was sudden and unforeseen. So, "regardless of whether a freak storm or flood destroyed the wall, if it was poorly designed or built, the insurer would be unlikely to pay out" cautions Janse van Rensburg.
Common causes of claims rejection that Janse van Rensburg encounters on a daily basis include:
- Tiles lifting due to poor adhesive
- Tiles cracking due to insufficient spacing preventing normal contraction and expansion
- Houses built against slopes without underpinning or adequate compaction supporting the foundation, allowing movement and causing cracks.
- Retaining or boundary walls not built to regulation, for example single course brick walls built higher than 1.8m without either supporting piers, weep holes, brick force or adequate foundations
- Inadequate roof pitch preventing water flowing freely off the roof. Water pooling on the roofs will penetrate buildings causing damage.
- Ceilings without brandering, or inadequately spaced roof supports, will sag and collapse
- Poorly damp proofed foundations allow rising damp to gradually penetrate the building
So, if you are buying a home, make sure that you have it thoroughly inspected. You need to know if any one of the structures are not built to regulation and what it will cost you to remedy the problem.
"To avoid claims being rejected at a later state, you safest course is to check first before you buy, and if you are going to do alterations, use approved providers from the outset" advises Janse van Rensburg.
If you already own a home but are uncertain about whether the building was built in accordance with national building regulations, you can still appoint a qualified professional to check.
"It is better to know and remedy your risks upfront before damage becomes a problem, or you try to off-set damages on your insurer" warns Janse van Rensburg.
Even though building regulations have been in force for about 60 years, structures like boundary and retaining walls are still routinely built without compliance.
As such it is important that homeowners ensure that the contractors they appoint to carry out maintenance or construction work are properly qualified, have the necessary certificates and come highly recommended.
Moreover, consumers themselves should look out for any design or construction short comings, no matter how small or unseemingly unimportant, and report these to their insurer.
Certainly, "it won't help to keep quiet about these problems in the hope that when damage occurs your insurer will just pay up" concludes Janse van Rensburg.

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Insurance implications of unpredictable weather conditions

The recent spate of unexpected tornados that have swept through South Africa have wreaked havoc across the country, leaving hundreds of residents in Gauteng and the Free State homeless, seriously injured or mourning the loss of loved ones.

According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, while the full extent of the damage from the tornadoes is still unknown many homeowners may be under the most pressure as they had either no, or inadequate, insurance in place.

“The severe level of underinsurance and lack of insurance in many instances in South Africa is worrisome. The government may provide financial assistance to those who have suffered loss from the unpredictable storm; however, it is unlikely to fully cover the total cost of the damage caused to homes.”

Fourie says that for those consumers who did not have home insurance policies in place, they could be looking at severe financial repercussions in order to restore their homes to its original liveable condition.
“As a rule of thumb, we are very fortunate in South Africa as property insurance policies tend to be fairly comprehensive in nature. As a result, most policies will automatically cover the damage caused by unforeseen weather conditions, so there is no need to take out specific cover against damage caused by storms such as tornadoes.”
“For example, if one looks at Mozambique, a country that experiences frequent tropical storms, the premium charged to cover against damage from weather conditions is far more expensive than in South Africa and cover against storms of this nature is usually excluded.”

Fourie says if South Africa were to see an increase in these types of destructive storms the overall risk exposure for the country would increase and could potentially result in the requirement for a specific cover against damage caused by severe weather conditions or a possible increase in property insurance premiums.

“One factor that does play a role in determining property insurance premiums, however, is the type of material used to construct the building. For example, buildings that incorporate wood or thatch are far more expensive to repair, which will mean higher premiums compared to a traditional brick house.’

“Those consumers who currently do not have property insurance policies in place should take this matter seriously and speak to a financial advisor immediately about the options most suitable for them. These types of storms could become more frequent in South Africa as weather conditions all over the world have become increasingly erratic and unpredictable,” concludes Fourie.

Article by Christelle Fourie (FA News)

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