All Risk cover may not cover all your risks this Easter
South Africans who are planning to take portable devices such as iPads and smart phones with them as they go on holiday over the Easter weekend are unlikely to be covered in the event of theft or loss, even if they have an All Risk section on their househ
This is according to Nazeer Hoosen, Executive Director: PPS Short-term insurance, who says people often believe that by having an All Risk policy in place they will be comprehensively covered for smaller items.
“The reality is that any item valued over R2 000 must be specified in certain policies in order to be covered when taken out of the home, such as golf clubs, bicycles, jewellery and expensive handbags. Furthermore, any portable electronic devices such as laptops, smart phones, cameras, iPads and other tablets must be specified on the policy regardless of the value,” says Hoosen.
He notes that the reason portable electronic goods are automatically excluded from All Risk cover unless specified is because of the increased likelihood of these items being stolen in transit.
Hoosen explains there are generally two sections in an All Risk policy – an unspecified and specified All Risk section of the policy. “The unspecified All Risk section of the policy refers to items that people carry on or with them and the risk is that it will be stolen or covered against accidental loss and damage “away from the residence”. Most policies provide a minimum amount of cover at no additional cost to the insured. When items exceed this value, items need to be specified in order to be covered. It is important for consumers to estimate the total value of items that they will take away from home when going on holiday, as well as to be aware of what needs to be specified and what does not need to be specified.”
He says that it is especially important for families and individuals who may be travelling this Easter to ensure that they mitigate any possible risks whilst on the road. “A good example is a recent claim which involved a family that had stopped at a service station and left three iPads clearly visible in their motor vehicle. They unfortunately fell victim to gross negligence which is not covered. In other instances when the iPads are not visible it could also be excluded by their policy due to the fact that the insurer’s terms and conditions of the policy reflects that these items need to be specified.”
“It is also very important to highlight the recent scam were insured’s fell victim to remote jamming where a remote control is pushed by a criminal at the same time as the motor vehicle owner attempts to use the vehicle’s remote key to lock the car, thereby blocking the signal and leaving the car unlocked unbeknown to the driver. In this case, the items subsequently stolen were not covered as the motor vehicle owner failed to check if the car was locked.”
“It is vital for policyholders to understand that exclusions do exist in an All Risk policy and to ensure that they speak to their broker to understand any terms and conditions. Essentially, if any item taken out of the home is lost or stolen, no cover will be provided unless it has been specified,” adds Hoosen.
“By engaging with an insurance broker well before travelling, consumers can ensure not only that any valuable items are fully covered but can also rest assured of enjoying a trouble-free holiday this Easter weekend,” concludes Hoosen.
