Wynand van Vuuren, client experience partner at King Price Insurance

Emigrating is one of the biggest life decisions you can make. Between selling your assets, moving your belongings, and getting settled in a new country, it’s easy to overlook the finer details… Like what happens to your insurance policies in South Africa. But, cancelling too quickly, or failing to update your insurer, can leave you exposed at a time when you can least afford it.

“Your South African insurance should remain in place until your assets are officially transferred into their new ownership, even if you’ve already left the country by this time,” says Wynand van Vuuren, client experience partner at King Price Insurance. “Many people think they can cancel their policies the moment they book their flights, but doing this can create unnecessary financial risk.”

Short-term insurance: cars, buildings, and home contents

You should keep your car insurance active until it’s legally transferred to the new owner. “If a car is still registered in your name, you’re still liable for what happens to it,” van Vuuren explains.

The same applies to your home. If you’re selling, your buildings insurance should stay in place until the property is registered in the new owner’s name. If you’re renting it out, you should cancel your home contents cover once your furniture is sold or shipped abroad, but you should maintain the buildings cover.

If you’re keeping your South African property as a base for visits, check your policy Ts and Cs. Many insurers limit cover if a house is unoccupied for more than a set number of consecutive days.

When it comes to moving your home contents, most insurers offer cover for accidental damage while your goods are moved by a registered removal company inside South Africa. But, this cover likely ends once your things cross the border. After that, you’ll need to arrange cover through your international movers or your new insurer abroad.

Long-term insurance: life and health

Life insurance policies often remain valid if you move overseas, but terms differ between providers. Some policies may carry restrictions depending on where you live, and full disclosure is key. “If you don’t tell your insurer that you’ve emigrated, or if you fail to update your residency status and contact details, you risk jeopardising future claims, as well as the validity of certain policies,” warns van Vuuren.

Medical aid cover also requires special attention. South African medical schemes generally only cover treatment inside South Africa, unless you’re overseas temporarily. This means you’ll need to arrange for new health insurance when you’re permanently in your new country, while also considering whether to maintain your SA membership for when you visit.

Plan, disclose, protect

Most short-term insurers require at least 30 days’ written notice before cancellation. But, cancelling too early can leave you without cover if your car, home or possessions haven’t transferred to their new owners, as well as if your belongings are still in your name. The bottom-line? If you don’t have a policy in place, you can’t claim.

It’s equally important to give your insurer updated contact details and banking info if you plan to keep any policies active in South Africa. By doing so you help to avoid disputes or payment lapses.

For South Africans heading abroad, understanding the fine print of your insurance can mean the difference between a smooth relocation and expensive, unexpected setbacks. “Emigration is a massive transition, but your insurance sometimes can’t move with you and it’s important to remain covered,” says van Vuuren. “If you don’t plan ahead, or if you cancel too soon, the risks can be significant.”

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