SA women without short-term insurance face serious financial risks

A study by payments company Visa revealed that a shocking 70% of South African (SA) women do not have any short-term insurance cover in place putting them at serious financial risk in the event of a replacement of expensive items due to damage, theft or loss.

This is according to Christelle Fourie, Managing Director of MUA Insurance Acceptances, who says when it comes to short-term insurance, most woman -regardless of whether they are single, married, a mother or business owner - has valuable possessions that they simply cannot live without. "It is vital that SA women start taking their financial security into their own hands to ensure they do not suffer great financial losses."

Often, a woman's most valued personal belongings are either carried around with her in her handbag (such as their iPad, mobile phone, camera, purse or even the actual handbag itself) or are located in her wardrobe or jewellery box, says Fourie. "Therefore, it is vital that all women ensure that cover for these essential items is included in their insurance policy. In addition, it is important that they make sure that the respective items are also covered for their total replacement value to avoid underinsurance."

Fourie says that regular assessments at MUA have shown that about 90% of women - particularly in the high end market - significantly undervalue the cost of their wardrobes, estimating them to be just half of their actual value. "The main reason behind underinsurance results from the fact that insurance values are calculated on the replacement cost of items, so a designer suit that would have cost a woman R2 000 a few years ago, will probably now cost in the region of R10 000 to replace. Fluctuations in the value of the Rand also have a big impact on the replacement value of items, so it is a good idea to have regular valuations conducted especially for belongings such as expensive jewellery or artworks."

"Even though it is quite rare that an entire wardrobe would need to be replaced, should a break-in or fire occur, it is vital for women to have apportioned the correct replacement value to their wardrobe to ensure everything can be replaced if necessary." she says.

Insurance for a woman's handbag and its contents is also a must - it is a relatively cheap addition but is always worth the additional cost, points out Fourie. "Women must also bear in mind that it is never advisable to carry valuable jewellery they are not wearing at the time in their handbag - a common practice among women when changing a watch or jewellery to suit their new outfit. Most insurance policies will stipulate that jewellery over a certain value must be stored in a safe when not worn."

Another tip to bear in mind when it comes to insuring expensive jewellery is to conduct regular valuations of the jewellery at a reputable jeweller to ensure it is insured for the most up-to-date replacement valueas fluctuations in precious metal prices can result in jewellery becoming underinsured. For example, if someone purchased a diamond ring in 2007 valued at R65 000, their current replacement cost of the ring could be as much as R120 000 due to fluctuations in the price of gold and other precious metals, so it must be insured for this higher amount in case of loss, theft or damage.

She says it is also important to always ensure an authentic valuation certificate - that properly identifies and describes all content of the jewellery, i.e. precious stone content, gold weights and certificates from independent diamond laboratories- is received with every purchase of expensive jewellery. "This will assist with future valuations, especially if there are drastic changes based on the exchange rate."

Fourie says when it comes to home and motor short-term insurance needs, safety and support are two of the most important considerations for any woman. "Value added benefits such as roadside or home-side emergency assistance should be considered, even if it means paying a slightly higher premium."

Emergency roadside assistance will offer extra services, for example, should the driver's vehicle break down, become involved in an accident or have a flat tyre, someone will be sent to the location to wait with the customer, while the tow truck driver or other emergency personnel arrive, says Fourie.

"Some roadside assist packages also provide a comprehensive concierge service whereby a female driver travelling alone can be accompanied to her destination to ensure her safe arrival."

Fourie sayss that MUA recently launched a concierge service where they provide someone else to drive the client's vehicle for any claim-related events, even if the client is not in it. "The purpose of this value-added service is to allow our clients to continue with their daily tasks while often inconvenient events are being attended to on their behalf."

She says that home assistance will provide emergency services and support needed in the household. "For example, calling out a plumber for an emergency job such as a water leak where, in most instances, the first hour of service will be covered by the policy and the owner will only have to pay additional costs for extra hours."

"With these above tips in mind, every woman can take better control to ensure their personal belongings are fully protected against theft, loss or damage," concludes Fourie.