In order to be fair to the Pineapple community, it is important that the amount you contribute is in line with the amount of risk added to the community. This means that you must select an appropriate value for the items you wish to insure.
Correcting the value of an item I've added:
It is quick and easy to correct the value of an item you have added to your profile. Simply click on the item, select "Estimated value," and input the corrected amount.
NOTE: Changing the value of the item WILL affect your premium.
What if I have an incorrect value and I then claim on the item?
Don't stress - your claim will still go through. However, Pineapple may choose to pay you what you insured the item for rather than replace it.
Example (for a complete loss):
Let's say you've insured your new Samsung S8 for R10 000 when the current market price is R12 000. You suffer a loss because of theft and need to put in a claim.
We will note that the premium contribution to the Pineapple community was the purchase of an R10 000 phone, but replacing your phone will cost R12 000. Therefore, it is only fair to the Pineapple members to pay you the R10 000 rather than replace it.
On a repair, the law of averages will apply:
If an item is worth R10 000 and you submit that the value is worth R5 000, You will only be paying half of the premium you should be paying. As your estimated value is half of the real value.
The result is that the community should only be paying half of the cost of the repair.
So if the damage is R4 000, then the community will pay you R2 000 (half) as a claim amount.