23 Jul When your precious things are not at home…

We offer short-term insurance to ensure that our clients’ precious things are protected in the event of a loss or damage. But what happens when the items that you want to protect, such as jewellery and high-value household goods, are not at home? We asked Safire’s expert, Claims Manager Greg Botha, to shed some light on various “what if” situations.

You are moving home and the truck carrying your household goods is in an accident / washed away in floods / looted. Are you covered?

Greg says: “The cover we offer is quite specific. In the event of theft, provided the move is associated with a permanent change of address and the loss is accompanied by visible forcible and violent entry into the conveying vehicle, the client is covered. If the loss / damage results from a fire, collision, or the overturning of the conveying vehicle, the client would also enjoy cover. The extent of the cover is always limited to the sum insured and the condition of ‘average’ may apply in the event of underinsurance being present.”

Your diamond ring is at the jeweller for repairs / to be evaluated for insurance purposes. What happens if there is a robbery / break in and it is taken? If the evaluation hasn’t yet been done, is your payout based on the previous and possibly outdated value?

Greg says: “Where an insured item is included under the All Risks Section of a Policy, a broader cover is offered to the client that assists when losses occur outside of your home. It is therefore preferable for high-value jewellery to be covered here (under Personal All Risks), than under the household contents section, where a more limited cover is provided. It remains the client’s responsibility to always substantiate their loss and this includes proving the value of jewellery, which can often only be achieved if a record exists of the specifications of the item such as the number and quality of the diamonds used, for example. To assume or guess these details after the loss without something to support this is difficult and therefore, a valuation certificate should always be kept. It helps to have the item valued regularly, as this will ensure that the sum insured is adequate and will allow you to replace the item should you face an unfortunate scenario that necessitates you having to claim.”

Your vehicle goes in for a service and is damaged in a fire at the dealership / garage or is stolen. What happens?

Greg says: “Provided you have comprehensive cover on your vehicle, generally speaking, you are covered for events such as this. An inquiry into the facts will always be necessary and the facts will be tested in the light of the Policy wording and the cover in place. Where an indemnification follows, there may be scope for the insurer to pursue a recovery against the party in whose care the vehicle was, should there have been negligence on their part in relation to the loss / damage.”

You intend selling your vehicle, which you then hand over to a motor vehicle trader for them to sell the vehicle on your behalf. Are you covered for loss or damage while the vehicle remains with the motor vehicle trader?

Greg says: “You unfortunately do not enjoy cover for any loss or damage caused to your insured vehicle while it remains in the custody and control of a motor trader for any purpose, including for the purpose of selling or marketing the vehicle. It is important therefore, for policyholders to ensure that the relevant motor trader has specific insurance in place that will comprehensively cover a policyholder’s vehicle while this important asset remains in the care of the auto trader.”

Could a Safire client add a holiday home in another country to their policy?

Greg says: “We do not offer our clients the option of insuring buildings that are situated outside of the borders of South Africa. However, motor vehicles do enjoy cover while temporarily outside of the borders of South Africa (but within the Policy’s defined territorial limits), and items insured under the Personal All Risks and Electronic Equipment sections of the Policy enjoy ‘worldwide’ cover whilst they are with you on shorter trips abroad or cross border. In relation to vehicles leaving the borders of South Africa, a ‘border letter’ is generally required from the insurer, so it is important to have your broker consult our underwriters while planning your next cross-border trip to ensure that you have everything you need to be properly covered.”

Please note that should you be paying off your vehicle, the financing company is the official titleholder so you will also require a border letter from them to prove that you have their permission to take the vehicle across the border. According to Wesbank, when crossing the border you’ll need a copy of your NaTIS registration document to prove you are the owner.

Please note: The information contained in this article is not offered as ‘advice’ in terms of the Financial Advisory and Intermediary Services Act 2002 as amended, and policyholders should consult with their intermediaries and the policy wording so as to ensure a full and complete understanding of the cover offered to them in terms of the Safire policy of insurance.