Insuring a festive season
When you and your family load up your car and head off for a well earned summer break take a few moments to consider the value of everything you take with – and whether it remains insured once you have taken it out of the house or driven it across the border.
After all, says Gari Dombo (pictured), Managing Director, Alexander Forbes Insurance “once your family have packed their latest clothes, cell phones, I-Pods and DVDs, as well as binoculars and diving equipment, not to mention jewellery, watches and sun glasses, you could be in for a nasty shock if you have an accident and lose it all - or have it all stolen from your condo on the South Coast.”
Household contents insurance, however, says Dombo “only covers your possessions as long as they remain on the premises nominated on your contents policy – unless otherwise stated.”
As such Dombo suggests that you consult your insurer or broker ahead of your holiday to find out what cover, if any, you have while away from home.
Either way since most people do not specify what possessions they take on holiday with them it makes sense to add an all risks cover to your household contents policy.
Another route, of course, is to simply take out travel insurance for the period that you will be away. The danger with this approach, however, cautions Dombo, is that “temporary travel insurance is relatively expensive and often leads to duplication of some of your existing covers.” It also means a separate debit, with additional costs, running on your bank account.
Instead, it is far more effective, and cheaper in the long run, to take the time to specify those items that you are likely to travel with on your existing all risks policy.
As far as motor insurance is concerned Dombo urges holiday makers planning to drive their vehicles out of South Africa to check whether their policies apply outside the Republic.
“Some vehicle policies restrict vehicle recovery costs to vehicles returned to the South African border”, says Dombo. So, if you have an accident in Mozambique, for example, it is up to you to get the vehicle from wherever it crashed, back to the border. This could involve a lot of effort and money.
Dombo adds that “Alexander Forbes will pay for recovery from anywhere within the territorial limits stated in their policy. This includes Namibia, Angola, Zimbabwe, Zambia, Mozambique, Botswana, Lesotho and Swaziland.”
Not all policies are, however, this generous and vehicle policy holders are advised to check the territorial limits of their policies before driving into any neighbouring countries.
Furthermore it should be remembered that in South Africa the Road Accident Fund (RAF) covers third parties injured or killed in accidents. People driving their cars across any of our borders should be aware that The RAF does not apply outside South Africa.
Hence Dombo cautions people travelling to neighbouring countries in their own vehicles to “firstly, check whether their insurance covers them outside South Africa and, if not, purchase appropriate temporary cover.
“Secondly, people should find out what vehicle liability insurance is compulsory in the countries they are travelling to - and then be sure to purchase this at the border to avoid being held personally responsible for any injury or death that they may cause while in these countries.”
