OUTSURANCE , NO CLAIMS TRANSPARENCY AT OUTSURANCE

I am writing to share a serious concern regarding OUTsurance’s handling of structural damage claims. Despite insuring my property for three million rand, I am left uncertain about how my coverage would actually be app**** in the event of a claim. From what I understand, OUTsurance may base payouts on the square meterage of the damaged area rather than the full insured amount, potentially leaving policyholders underinsured and unable to cover repair costs.

This worry was amplified when a friend, who insured their property for 3.8 million rand, was drastically underpaid on their claim due to this same calculation method. They received far less than needed to cover their actual repair costs, and this payout formula had not been made clear when the policy was taken out.

I attempted to contact OUTsurance to clarify how my own coverage would be calculated, especially since this is such an important aspect of any insurance policy. Unfortunately, the claims department couldn’t provide any clear answers, saying only that an assessor’s manager would have the necessary information. Despite my request, I have yet to receive a follow-up call from an assessor or manager to explain this.

As a customer, I believe it is only fair to expect full transparency in the claims process. Knowing upfront how coverage will be calculated—especially in scenarios involving structural damage—should be a basic part of policyholder information. I hope that OUTsurance will take this feedback seriously and make a greater effort to clearly communicate its payout procedures, helping clients avoid the shock of underpayment when they need coverage most.

To illustrate the issue, let’s consider a hypothetical scenario: if a garage, valued at one million rand, sustains damage, and OUTsurance calculates payouts based on a rate of 20,000 rand per square meter, then only 200,000 rand would be paid out for a 10-square-meter space. This approach would leave a significant gap in coverage, effectively underinsuring the client for substantial losses. Many policyholders are unaware that this calculation method is used at the claim stage, and such a shortfall could cause severe financial strain when repairs are urgently needed.

I need answers and transparency Make up a hypothetical example and tell me how you would pay that out. While I am open to increasing my structural coverage, it is critical for me to understand the formula OUTsurance uses to calculate payouts. Simply putting the onus on the client to "ensure adequate coverage" is not sufficient, as this leaves policyholders vulnerable to unexpected exclusions or shortfalls at claim stage. For example, if the value per square meter is 20,000 rand and my property has 100 square meters, I would need to insure it for 2.5 to 3 million rand to cover potential losses adequately. Without transparency around these calculations, clients are left guessing at the proper coverage levels, only to face potential coverage gaps when a claim is filed.

As a further point of concern, one of the last agents I spoke to mentioned that I would need to hire a structural engineer to assess my home’s value to ensure adequate coverage. This expectation was never communicated when I set up my policy. It is unreasonable to expect clients to know they must arrange and pay for such assessments to avoid underinsurance. If this is indeed part of the process, then it should be made clear upfront, as it is crucial for accurately determining coverage .

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