Change from ABSA HomeOwner Insurance and get penalized

<p>My property bond at ABSA is R1,200,000 and my property replacement was R1,590,000 with September 2015 when I took my bond to ABSA from Nedbank. </p> <p>I received a rerate replacement from R1,590,00 0 to R1,690,000 in August 2017 and got a competitive rate from Dial Direct for R466.03 (with R20,000,000 personal liabilty) against R612.62.</p> <p>When I informed ABSA Private Bank, they immediately stated an evaluation is needed on the property and eventhough I am covered by DialDirect for R1,700,000 the amount need to be adjusted to the new evaluation amount.</p> <p>If I stayed with ABSA, I would have paid (R385,000 difference):</p> <p>Market Value R1,200,000</p> <p>Replacement Value R1,685,000</p> <p>My new evaulation given to me on 14 August 2017 is now (R1,750,000 difference):</p> <p>Market Value R1,500,000</p> <p>Replacement Value R3,250,000</p> <p>I believe ABSA is penalising me for changing insurers and its ******* for them to do so. Why would an estimate between Market value and Replacement value jump from R385,000 to R1,750,000.</p> <p>I am now forced, yes forced, to uplift my cover to R3,250,000 (which is definitely going to get me a mansion built if something happens with high grade finishes). I now have to pay R595.23 and had to drop my personal liability to R5,000,000 to make this affordable.</p> <p>This ********* and unprofeesional treatment has been escalated to the Pre-Ombudsman for Banking Services today and will be escalated to the Short Term Insurance Ombudsman.</p> <p>Never take out HomeOwners Insurance with the bank when you purchase a home as it seems you will land up paying 4 times more at the end of the day. when you want to exercise your right to freedom of choice.</p>