Household Contents insurance protects the value of your stuff. Two ideas decide how much you actually get paid when things go wrong: Compensation Limit and Underinsurance.
The Compensation Limit: Your Maximum Payout
Your Compensation Limit is the absolute maximum Pineapple will pay for your Household Contents, exactly as shown in your Policy Schedule. It applies to:
A single event, or
A series of incidents that result from one event (e.g., one storm, multiple rooms).
Example: If your contents are insured for R200,000, that is the most you’ll receive for a qualifying event—minus any applicable excess—even if your actual loss is higher.
Sub-limits for High-Value Categories (the “fancy stuff” cap)
For precious metals and stones, jewellery, watches, furs, paintings, rugs, and carpets, Pineapple will compensate up to one-third of your overall Compensation Limit (combined).
Example: Overall limit R200,000 → combined cap for these categories is ±R66,666.67.
If your valuables exceed that, consider adding General & Specified Items cover so they’re properly protected.
Replacement Value: What We Mean (and why it matters)
Replacement value means what it would cost you to replace the lost/damaged items with similar, new items today (not what you originally paid).
Policy note: “It is the Policyholder’s responsibility to insure all your items for their replacement value.”
In other words: price it as if you had to go out and buy everything again, brand new.
Underinsurance: The Hidden Trap
You’re underinsured when your total contents are covered for less than their real replacement value. When you claim, Pineapple determines the actual total replacement value of all your contents at the time of loss (not just the damaged items). If that total is higher than the limit on your schedule, you were underinsured.
When that happens, payouts are proportional to the cover you actually bought.
The proportional payout (how the maths works)
Payout = Claim amount × (Sum insured ÷ Actual replacement value), then minus your excess.
Example (straight from policy logic):
Sum insured: R80,000
Actual replacement value: R100,000 → you’re insured for 80%
Claim amount: R30,000
Payout: R30,000 × 80% = R24,000, then less your excess
Your shortfall: R6,000 (plus excess)
Takeaway: Underinsurance quietly reduces every relevant claim—even if the single item is under your Compensation Limit.
How to Avoid Underinsurance (Future You will be chuffed)
Review values regularly: Price replacements as new (inflation and tech jumps add up).
Document purchases: Keep receipts/invoices for big-ticket items.
Keep an inventory: A quick spreadsheet or video walk-through helps—serial numbers = gold.
Revalue high-value items: Jewellery/watches (R5,000+ per item) need professional valuations, updated at least every 5 years.
Consider specified cover: If your art/rugs/jewellery exceed the one-third sub-limit, add General & Specified Items cover.
Update after life changes: Renovations, new tech, heirlooms—don’t wait for renewal month.
Quick Checklist
My Compensation Limit matches the true, current replacement value of all contents.
My high-value categories won’t exceed the one-third sub-limit (or I’ve specified them).
I have receipts/valuations/inventory I can grab fast if I need to claim.
Your Compensation Limit sets the ceiling. Underinsurance lowers the floor. Keep both in the right place and your cover will do exactly what you expect when you need it.
*The information provided here is for informational purposes only. For the full terms and conditions, please consult your policy wording.