When insuring your hobby or sport makes total financial sense

24 November 2021 PSG Insure

The outbreak of Covid-19 in South Africa and the various levels of lockdown that came to characterise the ’new normal’, have had a profound effect on how South Africans socialise and occupy their spare time. It should come as no surprise that many people have decided to embrace new sports and hobbies, particularly ones that involve the outdoors.

Bertus Visser, Chief Executive of Distribution at PSG Insure, points to the recent survey by Sandton wealth intelligence firm New World Wealth, and luxury lifestyle development Steyn City Parkland Residence, which focused on high-net-worth individuals. “Some of the top hobbies, according to the review, included golf, collecting fine wines and fine art, as well as hunting. Hobbies like online and video gaming as well as photography have also featured.”

But, what if…?

He notes that what all these hobbies have in common, is the need for expensive equipment. “So, what happens when these high-value items are accidentally damaged, destroyed or stolen? Firstly, people should ensure their safety by being aware of their surroundings and any potential risks. However, they also need to make sure that their new equipment is properly insured. Any high-value movable items must be specified under an All Risks policy, and depending on the value, any accompanying equipment too.”

It all adds up

Additionally, sporting technology and hobby equipment are often significant investments. Visser says that wearable technology for runners, for example, can cost in excess of R20 000. “Golfing is a notoriously expensive sport, with basic golfing kits averaging from R6 000 to R20 000. Even indoor activities can require a substantial outlay, with equipment like sewing machines and overlockers costing R6 000 per machine on average.”

The value of these items, coupled with other related expenses, can certainly add up. And with higher value comes a higher risk, which is why insuring your new hobby is essential.

When hobbies become side hustles

There are also those who have monetised their hobbies for some extra income. “Avid photographic hobbyists, for example, routinely turn their skills into a side hustle. Photographic equipment can be extremely expensive, with top-of-the-range cameras costing in excess of R25 000.”

What’s more, with budgets being stretched during lockdown, many South Africans opted to buy this kind of equipment on credit, further exacerbating the potential impact if equipment is lost or stolen. Insurance will be key in providing a safety net when things go wrong, putting you back in the position you were in before the loss occurred. But it is essential to make sure you’re adequately covered for the correct replacement value.

Tailor-made insurance is a must

In a world where we all need to be prepared for the unexpected, Visser says that insuring a hobby or sport is essential, particularly when you consider the risks involved in incurring damage to such expensive equipment.

“Coverage will vary according to a range of factors – including the value of the equipment, how and where it is stored, as well as other risk factors involved in transporting the equipment to and from various destinations.”

For instance, if you use your new mountain bike purely for recreational activities in your surrounding areas, your insurance needs will differ from someone who is competing in races around the country and needs to transport their bicycle (and maybe some spare parts) to each venue while staying in hired accommodation.

“Speak to your adviser about your options and make sure that the next time you head out for a day of fun or for a race, you’re covered, no matter what happens,” Visser concludes.

Quick Polls


The second draft amendments to Regulation 28 will allow retirement funds to allocate up to 45% of their assets to SA infrastructure, with a further 10% for rest of Africa; but the equity & offshore caps remain unchanged. What are your thoughts on the proposal?


Infrastructure? You mean cash returns with higher risk!?!
Infrastructure cap is way too high
Offshore limit still needs to be raised
Who cares… Reg 28 does not apply to discretionary savings
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