Insuring your prized possessions
Items you have inherited or bought over time contribute to your accumulated wealth. “These items could be very costly to replace if they are lost, damaged or stolen, especially if you do not have sufficient insurance in place,” says Bertus Visser, Chief Executive of Distribution at PSG Insure. “And some of these items in your personal collection may require specification to your insurer.”
Art and collectibles
You need to be able to prove you own any expensive paintings, and for this reason you would need to have a professional valuation done for insurance purposes. “This would also apply to any other type of expensive artwork, such as sculptures,” Visser says.
Stamp collecting is a good example of a hobby where the value of your monetary investment could build up substantially over time. Visser says you should have your collection valued from time to time in light of new additions, and have the updated value insured sufficiently.
If you own Krugerrands, you are required to have a certificate of ownership. In the event that you should need to claim, keep in mind that you may only recover the costs in line with the prevailing valuation at the time of the claim. “However, without specifying your Krugerrands and proving you own them, they might not be covered,” Visser adds.
Classic cars or luxury vehicles
Reputably known to change in value overtime, these items require specific insurance to make sure you are covered for damages or theft. These can be among the most costly to replace if you are not adequately insured. “Due to the complexity of the risk, you should contact a specialist adviser to make sure you have the right cover,” Visser says.
Antiques, such as furniture or crockery, could be exceptionally valuable and almost priceless, particularly from a sentimental stance. It is worthwhile to have them valued so they can be accurately accounted for in your contents cover, and some may even need to be specified. “Check with your adviser what is recommended,” he says.
Accessories and other special items
Often jewellery or pricey accessories are worn out of your home and may need to be specified under your all risk cover.
It is important to remember that if you carry around expensive perfume, make-up or any other valuables, your handbag and its contents need to be sufficiently covered. “Most policies provide limited handbag cover, so if you are carrying around items that exceed this cover in value, you will need to have the correct sum insured,” Visser says.
The same can be said for expensive watches, for example, or cufflinks – make sure you have factored in their correct replacement value, or specified them in your policy where needed.
You may have a firearm – or more than one – on your property. “These will also need to be specified in the event of any damages or theft, along with ammunition, loading equipment and scopes,” Visser adds. “These items are often even more expensive than the firearm itself, and you should therefore also take their value into account.” Should you need to claim, you will also need to provide a copy of your firearm licence, which must be kept up to date.
Firearms need to be stored securely of course. Be sure to check that you are adhering to the requirements outlined in your policy regarding having a home safe, as this could differ between insurers.
“If you are unsure about the state of cover for any of your special possessions, or have other valuables that might require specification, chat to your adviser sooner than later,” Visser concludes.