* It can be very expensive to specify items such as cellphones, notebooks, designer sunglasses and jewellery under the “all risks” section of your policy, which is surprising when you consider their value in comparison with bigger items such as a house. But premiums reflect risk, and gadgets and accessories are more prone to loss.
“We all know how quickly the value of a cellphone drops when the new model comes out, and there is no use paying the higher premium on the original value of the phone when the price has dropped,” said Jacqui Mayne from the PSG Simbithi Office Park in Ballito. “Regularly adjust your cover, as insurers will only pay out to the current value.”
Riana Wiese, short-term adviser from PSG Insure Meesterplan, says: “You could also keep your old phone locked away safely and forgo adding specified insurance on the new model. This will save you a couple hundred rand per month on average and allows for a back-up should your new device become stolen or damaged.”
* Although it might be cheaper not to specify in some cases, there are items that require special attention in order to be covered. Some jewellery or accessories, particularly items of value, may require a valuation certificate for insurance purposes.