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File Image: IOL

Keeping your 2021 in check: What are your insurance upgrades?

By Opinion Time of article published Jan 7, 2021

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By Bertus Visser

The new year is in full swing already, but for those who enjoyed a festive break, holding on to that holiday feeling might be quite tempting. Procrastinating can be peaceful to a point but delaying some important upgrades to your insurance cover could become quite a depressing reality check.

Visiting restaurants and partaking in other leisure activities are somewhat restricted or different with masks and the like, so some of our leisure spending has perhaps shifted towards making home the happiest place it can be.

The holiday period and any extra income could also make for some changes at home.

If any of the following examples outline your own experience, your insurance might be needing an upgrade.

You renovated your home

Perhaps you have added an enclosed braai room, a new patio, a home office, or an extension to the kitchen. While your first instinct might be to focus on complying with the regulations that apply, you should not forget that insurance needs to be updated to cover whatever improvements you make. These costs need to be collectively included in your property’s replacement value and insured accordingly.

You added an extra layer of security

Security improvements are worth considering when it comes to your cover. Not only do these keep us extra safe, but they can have a positive impact on your insurance premium, within terms and conditions. While it’s always better to check if the security upgrades will influence your premium before you make them, with crime being more prevalent as economic times get tougher, it’s never a bad idea to take extra precaution.

You upgraded your entertainment

A new TV, sound system or perhaps a gaming console could be additions to your living space. Spending more time at home makes these purchases worth it as they are likely to be used more, but they also need appropriate insurance cover. What you spent or what was spent on you to own these items, must also go into your total contents insurance cover.

You bought new clothes

A handbag might be part of the mix or perhaps some sports equipment too. Unless you manage to get a bargain, clothing and accessories are generally expensive to buy new. All of your goods and garments should be collectively accounted for, within your contents cover. Just think of the total cost of new running shoes, that designer coat and new watch alone. It can be very pricey to replace a wardrobe if a flood or fire destroyed it, especially without adequate insurance.

You added to your gadgets and bookshelf

Be it kitchen appliances, a new laptop or even some cooking books, items like these also need to be considered. They might seem small but when you add everything up, it could cost a lot to replace new, so they should count towards your total contents cover. Some items are likely to leave the house with you, but some won’t require cover like others do. A cookbook will certainly not need cover like a laptop would.

These are just some examples. Thinking about your own home and recent additions or purchases should hopefully inspire a game plan. The new year is a nod to checking in on your cover to ensure your bigger picture is accounted for, always.

Bertus Visser is the Chief Executive of Distribution at PSG Insure

PERSONAL FINANCE

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