Give.ONE possible reason for this big dill
Bomvana pays a MiHome premium for household content zover to the value of
R200000. After the household contents were evaluated for insurance purposes,
he bought an additional lounge suite.
Explain how the purchase of this new item will affect is MiHome content
premium.

When Bomvana buys an additional lounge suite, the total value of his household contents increases, which consequently affects his MiHome content premium. Since insurance premiums are typically calculated based on the total value of the insured items, adding a new item worth, say, R30,000, will lead to a higher premium. This is because the insurance company needs to cover the increased value, meaning Bomvana will have to pay a little more each month to ensure all his belongings are adequately protected.

Moreover, it’s important for Bomvana to inform his insurance provider about the new lounge suite as failing to disclose significant changes in household contents could cause issues in the event of a claim. By keeping his insurer updated, he ensures that he has comprehensive coverage without any surprises or lapses in his policy.