How to determine if your assets are properly covered by insurance

You’ve finally splashed out on that smartwatch you’ve been saving up for, received a beautiful set of gold earrings for your birthday, bought a smart TV, or joined the growing ranks of drone owners. You can’t wait to start using or wearing your exciting new item, but how do you make sure it is adequately covered?


Step #1: Ask the right questions

The first question you should ask yourself when assessing your cover is: Will I wear or carry my new gear outside my home? 

If you answered no, and your items will never leave your house, then you only need cover for these goods at home. Check if your items are insured under your household contents insurance and that your protection is sufficient. If not, ask us to add additional cover.

If you answered yes, and you’ll be wearing or carrying around your valuable new possession when you go to work, play sports, hit the town or go on holiday, then household contents insurance is not going to be sufficient. You will need to insure your items under “all risks” insurance. 


Step #2: Determine what type of ‘all risks’ cover you need.

When it comes to ‘all risks’ insurance, your smartwatch, earrings and drone may all fall into different categories and there is a difference between Unspecified All Risks, Specified All Risks and Assets Out cover. We unpack each below:

  1. Unspecified All Risks

Your new earrings (along with personal items such as clothing, your watch and handbag) fall into this category. Your items will be automatically covered, but your policy is limited to 25% of the sum insured in the event that you may claim. Take a look at your policy and if your jewellery’s value exceeds the limit, you may need extra cover.

  1. Specified All Risks

Cell phones, laptops, computers, bicycles, sport equipment, sunglasses and prescription glasses, jewellery and the like, may need to be specified under all risks so there is complete cover. Always remember to provide the serial number for the electronic equipment, IMEI numbers for cell phones and their replacement costs. For certain items, you may also need to provide a professional valuation certificate.

  1. Assets Out Cover

Should you wish to specify higher valued items and enjoy a broader type of All Risks insurance, this is available on our Elite policies which have minimum qualifying criteria.


Please contact us if you are considering this type of cover and we will gladly assist. 


Specialist cover

Cover for your drone while you’re flying it, or photography equipment that you use for financial gain falls into a different category. These high-value or high-risk items usually do not qualify for standard specified or unspecified all risk cover and need specialist cover. If you need specialist cover for your items, please contact us to discuss your options. These will vary depending on whether you plan to use your drone solely for recreation, or for commercial purposes. (See below.)


Drone insurance

Will you be using your drone purely for fun or for commercial gain?

Recreational use: You will be able to insure your drone under household contents cover. This means that it will not be protected once it leaves your house and is “in use”. If you need cover away from home, you can specify it, but you still may not be covered while it is used. You can expand your coverage options by getting your remote pilot licence and being registered. Third Party Liability is always excluded. 

Commercial use: If you’re registered as a commercial drone pilot with a remote pilot licence you should qualify for tailored commercial drone insurance.  

Some additional points to consider: 

  • Are your hearing aids covered? Sophisticated hearing aids make use of digital technology, software and sometimes even apps, meaning your insurer may view them as electronic devices that need to be specified under all risks.
  • Are your new bicycle and golf clubs protected while you use them during a sporting event? Check, and specify them under all risks if necessary.
  • What are your all-risk policy requirements? You may have to lock unworn jewellery in a safe or carry it in hand baggage when you board a plane to ensure it is covered.
  • Have you provided us with up-to-date valuation certificates for items such as gold, silver, and platinum or precious stones? Failure to do so may affect future claims.
  • Are you covered while travelling? All risks insurance generally covers you worldwide, but there may be restrictions.
  • Check your policy and refer to the warranties or clauses applicable under this section as well as the Household Contents section.
  • Never assume that all risks cover is automatic. Make sure your items are adequately protected and specified if necessary. Vehicle remote Jamming is on the rise, specifically toward the festive season so be extra vigilant when locking your vehicle.


In Summary

The main difference between Unspecified and Specified cover is:

Unspecified All Risk cover is a rand value amount that you choose to cover all of these items. For example if you choose R20,000 to cover your personal effects, the items themselves are not individually noted on the policy but they are covered under this amount. Certain items, such as electronics, a smartwatch is an electronic device, are not covered here and you will need to specify these. Be mindful when selecting your cover amount as the policy could be limited to 25% per item of the sum insured as mentioned above. Therefore, if your item is worth R10,000 and your sum insured is R20,000, you would be underinsured and only be paid out R5,000.

Specified Cover is the actual noting of each item, its value and specific details to ensure full coverage of the item which will also carry its own premium attached as well.

We trust that this has been a helpful guide regarding the insurance of your assets and that in the unfortunate event of having you claim, the outcome is favourable. Should you be uncertain about whether you are properly covered or which cover to select for certain items, don’t hesitate to click here to contact us.