It is a wonderful time of the year for a holiday trip. When it comes to packing for our vacation, we pack our best clothing and jewellery, camera, and portable technological devices. If we are going fishing with friends, we want to take our best (and often expensive) gear.
One overlooked aspect of the trip is that all of these valuables increase the risk of theft. There is nothing worse while travelling than to have your possessions or money stolen.
When travelling this holiday season, it is wise to cover your possessions with an All Risk insurance policy. There are many insurance companies that offer this type of insurance and we can assist you with this.
An All Risk Insurance policy allows the customer to cover all personal possessions belonging to them or to any member of their household when taking items from your home.
This insurance can also be tailored to cover personal valuables such as camera insurance, jewellery insurance, and mobile phone or luggage insurance. It is wonderful to have peace of mind during the holidays to know that your valuables are covered in case of theft or if your items are lost.
An All Risk insurance policy is perfect for getting out and about for travellers on the go. Your valuables will be covered regardless of where you choose to go for your holiday.
The two types of coverage offered are Unspecified - and Specified cover:
Unspecified All Risk Cover
This risk cover covers all items that you take out of your home with you on holiday. This is a set coverage amount and does not require you to itemize your belongings such as giving a list of everything you take with you.
All items will be covered under their current replacement value. It is also subjected to an all-encompassing sum selected when signing up for this coverage. There is usually a limited sum assigned to each possession. If any item included in the coverage exceeds the set amount, then it must be specified.
This coverage is great for items that you take out of your home every day. These items are usually things that you wear or carry with you on a daily basis. Because these items may change regularly, it is nearly impossible to itemize to insure individually.
Specified All Risk Coverage
With this coverage, each item is separately insured. An individual rate will be assigned for each item in the traveller’s possession. This rate will be dependent on how desirable it is for theft.
For example, a laptop would be more desirable than a standard wristwatch. Each of these valuables should have their own valuation certificate to prove your ownership and the value of the item in the event something happens to them.
This type of insurance coverage is usually needed when any one item in your possession once you leave your home is valued at more than R1 500. This could include technology or expensive jewellery as well as other expensive items that you may choose to travel with on holiday.
When purchasing an All Risk coverage policy, be sure to get a low excess rate. Some insurance companies offer fixed excess rates so if you do have to file a claim, your payments will stay the same regardless of the claim amount.
Be comfortable with your excess amount and make sure it is a sum that you will be able to comfortably afford should disaster strike.
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The Fine Print
It is important to know what the terms are and what the fine print means before you sign up for your All Risk policy. One of the biggest misunderstood sections is for Wearable Apparel. When it comes to Wearable Apparel, most policies are referring to these items:
- All Wearable apparel excluding furs
- Handbags, luggage containers and briefcases
- Sporting Equipment excluding motor vehicles, pedal cycles, trailers, watercraft, aircraft and hang-gliders
- Watches, jewellery, trinkets and toilet requisites
- Cameras, binoculars, and pocket calculators
- Other personal items carried by the person, excluding mobile phones, laptops, i-pads, radios, sound reproduction equipment and firearms.
Items stolen from a vehicle must be done through forcible entry for the claim to be paid out. Most insurance providers will require the purchaser to lock their items in the boot of the car or in the cubby holder, so they are well hidden from passersby.
The claim might not be paid out if there is negligence on the part of the customer. Although there is an insurance cover in place you still need to be responsible and take appropriate mesaures to ensure the safety of your belongings.
All Risk insurance is made for holiday travellers and all of the vacationers worldwide. Thieves and pickpockets are looking out for opportunities during these holidays as well.
Don’t give them the opportunity to add your possessions to their holiday haul.
Go into the holidays prepared and have an experienced broker by your side. By adding this coverage to your insurance policy, you will be prepared for thefts on holidays.