You’ve probably heard the term “total loss” used with cars — but it applies to Household Contents insurance too. Knowing what counts as a total loss for your belongings (and what it means for your payout) helps you avoid surprises when making a claim.
What Does "Total Loss" Mean for Household Contents?
In simple terms, a total loss happens when an insured item is:
Stolen or accidentally lost
Completely destroyed
Damaged beyond repair — fixing it would cost more than it’s worth.
If it’s gone for good, or can’t be restored to its original condition without breaking the bank, it’s considered a total loss.
How Pineapple Compensates You
If an item is declared a total loss, Pineapple will cover it in one (or a mix) of the following ways:
Cash Payout - Paying the replacement cost.
Replacement - Sourcing a new, similar item through an approved supplier.
Repair - Covering repair costs (if repair is still possible).
Compensation is always based on the replacement value of new, similar goods at the time of loss — up to your Compensation Limit on the policy schedule.
Premiums After a Total Loss
Even if an item is written off as a total loss, your premium for that month still applies. Why?
Because your policy covers you for the whole month, not just until something happens. Pineapple puts it like this:
“If a Covered Event leads to the Total Loss of an Insured Item during the Period of Insurance, we will not refund the monthly premium for the balance of that Period of Insurance.”
Salvage: What Happens to the Item
If Pineapple pays out for a lost or damaged item, the remains of that item belong to us. That might mean we collect the damaged goods from your premises. Important note: you can’t abandon property to Pineapple if your claim is rejected.
The Role of Underinsurance
Here’s where it gets tricky:
If your total household contents are insured for less than their real replacement value, the underinsurance clause kicks in. That means:
You’ll only be paid out proportionally to the cover you bought, even if the specific item is below your Compensation Limit.
Example: If your total contents are worth R500,000 but you only insured them for R250,000, you’ve effectively insured 50% of your belongings. A R10,000 total loss claim would only pay out R5,000.
Moral of the story: make sure your sum insured matches the actual replacement value of your stuff.
A “total loss” sounds dramatic — and it can be. But by knowing how it works, what you’ll be compensated for, and how underinsurance plays into it, you can prepare better and avoid being caught short.
*The information provided here is for informational purposes only. For the full terms and conditions, please consult your policy wording.