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?
If the item is valued more than what you insured, you'd be overinsured. Similarly, you'll be underinsured if the item's value is less than the insured amount. But, don't stress - your claim will still go through.
However, Pineapple may choose to pay out in proportion to the sum insured.
Example (for a complete loss):
Let's say you've insured your new item 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 was the purchase of an R10,000 phone, but replacing your phone will cost R12,000. Therefore, it is only fair 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, your estimated value is half of the real value. You would've only paid half of the premium you should be paying.
The result is that Pineapple should only be paying half of the cost of the repair.
So if the damage is R4,000, Pineapple will pay you R2,000 (half) as a claim amount.