Be wise, insure gifts received over the festive season
Quite possibly the worst start to the New Year would be if your new Christmas gifts were stolen and your insurer refused to replace them as they had not been properly insured. Unfortunately, according to Mutual & Federal, one of South Africa’s leading short-term insurers, you wouldn’t be the first person to whom this has happened as insuring gifts is the last thing on people’s minds.
“Gifts such as jewellery, electronic gadgets and fashion accessories should be itemised and insured as soon as they are unwrapped,” says Samantha Boyd, general manager for Business Development and Sales at Mutual & Federal.
“In reality though, people are so excited about their acquisitions that they simply start enjoying them without thinking about the consequences of losing them.”
According to Boyd, people often take for granted that they are adequately covered, without thinking of the limits of their insurance. “As soon as items are removed from the home, they are no longer insured in terms of the Household contents cover,” she points out. “For example, a gift of a cell phone must be insured under the All-Risks section either as specified or unspecified items.”
Policyholders must review the All-Risks section of their insurance policy to ensure that all their possessions are properly covered - taking into account, for example, increasing replacement values.
A good example of how values change can be seen in items such as jewellery. “A wedding ring valued at R10 000 today could fetch a far higher price in ten years’ time, but you won’t be able to replace it if you have not correctly assessed and stated its value,” warns Boyd.
The same goes for ladies’ handbags and their contents, which these days often include expensive items such as cell phones, sunglasses and jewellery.
Here’s what you should do on a regular basis:
- Assess your high-value possessions and establish which you’d like listed in your policy schedule. Ladies should do a regular handbag inventory as well.
- Check your policy to see what is covered in the All-Risks section.
- Ensure all items identified above are specifically listed in the schedule.
- Contact your broker or the Mutual & Federal Personal Lines Contact Centre and ensure that the policy changes have been made.
A final word of warning is to watch out for criminals who are eager to snatch bags and roam parking lots. With a few common sense practices, you can help prevent these thefts.
“Many shoppers leave presents and expensive electronic items out in plain sight in cars when shopping. Take a moment to hide them, lock them in your boot, or better yet, don't bring them out at all,” says Boyd.
“By putting this advice into practice and reviewing your insurance policy before a loss occurs, you’re sure to enjoy greater peace of mind,” concludes Boyd.
