We all have valuable possessions that we take with us when we leave our home. These items, which are usually expensive, are generally not included in your normal home contentsinsurance policies. It can include anything from jewellery, wallets, sunglasses and clothing to mobile devices, sporting equipment, and even wheelchairs and children’s car seats. It is important to note that all risk insurance is not a stand alone policy but can be taken in conjunction with your home owners and contents policy.
All of these items are bound to leave your insured premises at some point in time, and if it is not adequately covered, it can set you back quite a bit. We, at De Wet De Villiers Brokers, don’t want that to happen to you, so here are the ins and outs of Personal All Risk Insurance:
First things first– Personal All Risk Insurance is the insurance you should never leave your home without. It offers you, the policy holder, coverage and protection from risks, perils, loss or damage to your personal property.
SPECIFIED VS UNSPECIFIED – WHAT’S THE DIFFERENCE?
A lot of people don’t know the difference between specified and unspecified items when it comes to their insurance cover. Do you?
Let’s say you have an expensive item, such as a ring, that is worth R50,000. You go out and about your normal day to day activities, not even thinking about its worth or the risks involved around wearing it. In the unfortunate event that it gets lost or stolen, most insurance policies will not pay outits full replacement value if it is not specified. Here’s why:
With Unspecified All Risk Insurance you receive broad cover for all the personal possessions you take out of your home on a daily basis. These items can change from day to day, for example the content of your handbag, or unspecified jewellery. Insurers usually allow a percentage of the sum insured per item.
Specified All Risk Insurance affords cover for a specified item stipulated in your policy. It enables you to specify the item as well as its value, for example if you specify your wedding ring.
Even though all insurance companies have different thresholds of what is covered under unspecified All Risk Insurance and what should be specified, a general rule of thumb is that the more expensive items, such as your laptop or wedding ring,should be specified. It is also important to note that insurers often insist on specific items being specified, for example, cell phones. Ensure you consult your financial advisor about the items specified in your insurance policy, and don’t be afraid to ask questions about the items you are unsure of.
DECIDING WHAT YOU NEED
Obtaining Personal All Risk Insurance is easy and much more affordable than one would think. However, it is imperative to investigate what insurance cover offers you the best benefits according to your needs, as well as budget. Time should also be taken to consider any exclusions, as well as the position you would find yourself in in theevent something did happen.
It is worthwhile in the long run to take the time and meet with your personal broker to discuss your requirements. Your broker should be adept at analysing your needs to ensure you find the best insurance cover at an affordable rate.
You are welcome to contact any of our brokers at De Wet De Villiers Brokers for additional assistance and advice: 014 592 1077.