Insure Christmas gifts even before they leave the store
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2011
Mon
05
Dec
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Mandy Barrett
Aon South Africa
With holiday crime a reality it’s only sensible to insure expensive gifts, ideally even before they leave the shopping centre suggests insurance brokers Aon South Africa.
“It’s an unfortunate reality that, while the Christmas season brings out the spenders, it also attracts the criminals who are making ‘shopping’ forays of their own,” says Aon’s Mandy Barrett.
“There are simple safety precautions you can take: shop only in daylight hours, park your car in a secure area where there are plenty of people about, don’t sit down in a restaurant where you are unable to keep an eye on your valuables and so on.
“Also, if possible, don’t openly display an expensive item you have just bought, don’t leave you car unattended after you have put high value items into the boot and don’t leave anything on the backseat.
“And remember that car thieves are now using technology against us with a device that stops you from locking your car, so always check that the vehicle is secured.
“As far as possible remove yourself as a target for thievery or mugging but as an added precaution, make sure valuable items such as jewellery, cameras, cellphones, laptops etc, are insured, ideally even before you leave the store.
“In this respect it’s important to understand the difference between ‘All Risks’ cover and ordinary household cover. Should you lose a camera in a burglary at home, you would normally be covered under your householders’ insurance but that same item, if it were to be removed from home, would need to be specified under the All Risks section on your policy.
“Most policies will in fact cover household goods and groceries in transit to and from a place of purchase up to a certain limit under All Risks, but it’s worthwhile checking your policy terms and conditions to ensure this cover is actually in place and that you are adequately protected.
“But that very same item, if removed from your home for whatever reason, ceases to be covered unless specified under ‘All Risks.’ The same applies if you suffer a loss of the item even while taking it home from the shopping centre.
“Also the value specified should be ‘replacement value’ or you could find that , while the policy pays out, it does so on the basis of the ‘average ‘ formula where only partial payout is received because the item was not correctly valued.
“It’s all to do with what an underwriter described recently as the ‘wealth effect’ which is driving up replacement values of all manner of goods. The downside is that, while we are all technically ‘wealthier,’ the financial risk is greater.
“Also, when it comes to replacing lost, stolen or damaged items of value, you may find that costs have outstripped your buying power, forcing you to compromise on the replacement item if you are not fully compensated under your insurance policy.”
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