Don’t think that it cannot happen here. There are rumours that it could also happen here again, like it did a few weeks ago.
Hopefully not. But what should you do to prepare?
Most importantly, make sure that your insurance is up to date.
Nobody wants to find out afterwards that you have forgotten to pay and the insurance company does not pay out.
Make sure that your insurance policy is paid up to date and paid out of an account that will not fall below the level required to pay the policy when it is due for payment.
Sounds crazy but it can happen.
Bank balances fluctuate during the month so you need to make sure that it is never too low to cover your insurance policy.
A good idea would be to have a separate account into which you can put a float to cover the policy at any time.
Another important aspect is to make sure that you are fully covered.
It is just too easy to find that you are under-insured.
Remember you don’t need to cover the value of the ground because the ground cannot be destroyed.
But make sure that you have not covered the replacement cost based on the main buildings only.
What about outbuildings, paving of the yard and boundary walls and gates?
A 2.1 metre full-brick thick wall with security on top could easily cost you R2 000 a running metre, plus the entrance gate.
We have been talking about the buildings that form your business premises, but what about what is inside.
Think stock, electronic equipment and furniture, machinery and plan, overhead cranes and vehicles, including forklifts.
Make sure that your valuations are replacement cost.
Lastly, whatever you do make sure that your fire-fighting equipment is up to date.
So often I find that the service period has run out sometimes by years.
- Mike Spencer is the founder and owner of Platinum Global. He is also a professional associated property valuer and consultant with work across the country as well as Eastern Europe and Australia.
