What to do ??





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Thread: What to do ??

  1. #1
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    Default What to do ??

    I've just received my a new Homeloan statement and my Interest Rate adjustment letter on one of my properties from the bank

    I've with shock realised that I pay a monthly insurance premium and they've deducted a yearly insurance premium against my homeloan for the age of the contract (almost 5 years)

    How do I approach this one ??

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  3. #2
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    Default Re: What to do ??

    Discuss it with the homeloans department?
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  4. #3
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    Default Re: What to do ??

    Quote Originally Posted by spicydave View Post
    I've just received my a new Homeloan statement and my Interest Rate adjustment letter on one of my properties from the bank

    I've with shock realised that I pay a monthly insurance premium and they've deducted a yearly insurance premium against my homeloan for the age of the contract (almost 5 years)

    How do I approach this one ??
    They will refund if you bring it to their attention. Double jeopardy.
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  5. #4
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    Default Re: What to do ??

    Bank will fix that but worth to mention:

    There is a trick banks use. They add the insurance premium on the outstanding bond value and payment can go off 30 days later. So basically paying interest. I learned this when I paid the bond in full. Better to have the insurance to go directly from current account. AND ask discount from the bank insurance. Three years in the row they have given such to me.
    Jouko
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  6. #5
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    Red face Re: What to do ??

    Get a quote from your own insurer and submit to your bank informing them that you want to cancel their insurance. They are reluctant to do so but MUST if you comply with their requirements (Yearly escalation, insured value and personal liability). My premium with my own insurer is a lot lower than what the banks was.

  7. #6
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    Default Re: What to do ??

    Quote Originally Posted by desdrake View Post
    Get a quote from your own insurer and submit to your bank informing them that you want to cancel their insurance. They are reluctant to do so but MUST if you comply with their requirements (Yearly escalation, insured value and personal liability). My premium with my own insurer is a lot lower than what the banks was.
    I priced. Bank is better when you look at the conditions. This was before I got the discounts. My broker actually recommended not to change. One difference in conditions is land slip. Included into bank but normally additional cost on non bank. My cottage is insured by non bank but they specialize on thatch roof structures. Standard insurance company cannot compete there.

    If insurance A is substantially cheaper than B there is a reason:
    - person insuring has not asked a discount or
    - there is a difference in conditions or
    - both above
    Jouko
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    Never drive a normal car

  8. #7
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    Default Re: What to do ??

    Quote Originally Posted by Jouko View Post
    I priced. Bank is better when you look at the conditions. This was before I got the discounts. My broker actually recommended not to change. One difference in conditions is land slip. Included into bank but normally additional cost on non bank. My cottage is insured by non bank but they specialize on thatch roof structures. Standard insurance company cannot compete there.

    If insurance A is substantially cheaper than B there is a reason:
    - person insuring has not asked a discount or
    - there is a difference in conditions or
    - both above
    Correct! I went through the same exercise. My h/hold and vehicle insurer was R3000 cheaper than ABSA, but the insurer would not put it in writing that they covered "ground subsidence" despite it being mentioned as an additional item on the quote that required an increase in premium.. Go figure. They would not give me a quote that included ground subsidence which is a requirement with an ABSA bond.

    However, if you read what is covered under an ABSA house policy, there is a great deal that is covered, like broken windows for example.

    Also remember that to get paid for a claim you must include driveway paving, gates, walls etc.. If you don't include everything they will only pay a portion of the claim.

  9. #8
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    Default Re: What to do ??

    Quote Originally Posted by NewLandy View Post

    Also remember that to get paid for a claim you must include driveway paving, gates, walls etc.. If you don't include everything they will only pay a portion of the claim.
    My bet that very many people are under valued. Insurance value is replacement value of everything, possible fire engine fees, new drawings, approval costs, engineers, rubble removal... Selling price of my house today is under R2 milj but insurance is close to three and I will not change that value by one cent.
    Jouko
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    2003 Grand Cherokee 4.7l
    2012 Smart
    Never drive a normal car

  10. #9

    Default Re: What to do ??

    One has to check all bank charges and premiums with a fine tooth comb.

    Nedbank decided to charge me a monthly premium of R33 for an insurance against an overdraft.

    I donít have even have a Nedbank overdraft facility......

  11. #10
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    Default Re: What to do ??

    Quote Originally Posted by Therackermann View Post
    One has to check all bank charges and premiums with a fine tooth comb.

    Nedbank decided to charge me a monthly premium of R33 for an insurance against an overdraft.

    I donít have even have a Nedbank overdraft facility......
    Reminds me to cancel my overdraft. I used it once is the last 20 years. Nedbank has received fees close to the amount of the overdraft already. Sometimes we just over cautious with everything and have
    forgetful conviction in the Almighty above.
    Discovery Landrover 3 tdv6 2008
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