Protecting valuable gifts and new electronics key to a happy new year
Research by the Berg Insight shows that sales in wearable smart devices will continue to grow worldwide and will hit 64.0 million units by 2017, with a 168% jump in sales of these devices between 2011 and 2012. The recent launches in South Africa of these devices, such as the Samsung Gear smart watch, highlights the risk involved of not properly insuring expensive electronic items once they have been received.
This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says South Africans need to ensure that any expensive items are added to the insurance policy as soon as possible to avoid the financial consequences should the items be lost, stolen or damaged.
"Many consumers often forget to add valuable gifts they have received over the festive season to the all risks section of their personal insurance policy, assuming that all new possessions will be automatically covered by their existing insurance policy. However, some providers require new possessions such as expensive jewellery and electronic devices, valued over a certain amount, to be specified in order to ensure the correct insurance cover is in place.”
It is therefore crucial for homeowners to review and update their policies on a regular basis, especially after receiving valuable gifts, says Fourie. "The best way to ensure that new possessions are fully covered would be to contact a broker or insurer requesting the policy to be updated with the new items.”
Fourie provides the following tips to ensure valuable items are covered:
• Contact your broker immediately: As soon as valuable items are obtained, contact the insurance broker or company and inform them of the new items and their value, to ensure full coverage.
• Review your limitations: It is important for policyholders to review coverage limitations for certain types of losses, for example accidental breakage may not be included in the insurance policy.
• Keep a copy of the gift receipt: It is a good idea to forward a copy of the receipt for any gifts or valuable items that are purchased to the insurance provider, so that there is a record of the retail value of the items. Policyholders should also keep a copy for themselves and update their home inventory accordingly. By getting into the habit of keeping a visual record of all personal possessions will help speed up the claims process.
• Store valuables in a secure location: Protect expensive gifts and jewellery by storing them in a secure location. Use a safe where possible to ensure extra protection - some insurance policies require valuable items such as jewellery to be stored in a safe when not worn. Usually these same requirements also apply when on holiday.
• Do not leave any personal items in your vehicle: Most insurance policies require items to be kept in a locked boot or compartment in your vehicle, for cover to be in place. In addition, insurers require signs of force into the vehicle, so please ensure your vehicle is properly locked by testing the door handle, before walking away from the car.
"By understanding the limitations and requirements of a home insurance policy, consumers will have the peace of mind that their valuable gifts are adequately covered,” concludes Fourie.
