We often think of insurance in terms of the big things: the structure of our homes, the cars we drive or that expensive smart TV. However, in my experience, the most distressing surprises for consumers often involve the smaller, everyday items they rely on most.
Many policyholders assume that because they have household contents cover, everything they own is automatically protected against every eventuality. Unfortunately, this is a common misconception that only comes to light when it’s too late. The reality is that the items that form the fabric of our daily lives such as smartphones, laptops, prescription glasses, and even solar panels often fall into insurance blind spots.
The inside vs. outside divide
The most significant gap in cover typically involves portability. Standard household contents insurance is generally designed to protect items while they are inside your home. The moment you step outside your home with your laptop in a backpack or your smartphone in your pocket, the nature of your risk changes.
To ensure these items are protected against theft or accidental damage while you are at work, at a coffee shop, or travelling, they usually need to be specified under all-risk or portable possessions cover. If a tablet is stolen from your car or your prescription glasses are damaged while you’re out running errands, a standard home contents policy may not provide the protection you expect.
The underinsurance gap
In an era of high inflation and rapid technological advancement, the cost of replacing a high-end smartphone or a specialised mountain bike can increase significantly in just twelve months.
If you insured a laptop three years ago for R15,000, but a comparable new model now costs R22,000, you are underinsured. It’s therefore critically important to regularly review your policy to ensure your sum insured reflects today’s retail prices, not yesterday’s bargains to ensure that you are appropriately covered in the event of a claim.
Check that your solar installation is covered
As South Africans increasingly turn to renewable energy, solar installations have become high-value household assets. However, having panels on your roof or an inverter in your garage does not guarantee they are covered. In order for solar panels and inverters to be properly covered, they must be professionally installed and fully compliant with South African National Standards (SANS).
Insurers will usually require a valid Certificate of Compliance (CoC) to honour a claim. Furthermore, because these systems are fixed to the property, they should be included under your buildings insurance rather than contents, but this distinction must be clearly communicated to your insurer to ensure the total sum insured is adjusted accordingly.
Practical steps to close the gap
Being proactive is the best defence against unexpected events and the resulting financial strain. These are the top tips to consider in order to avoid surprises at claim stage:
- Audit your portable possessions: List the items you regularly take out of the house (jewellery, laptops, cameras, sports gear) and ensure they are specified as portable possessions.
- Keep your receipts and CoCs: For high-value tech and solar installations, digital copies of proof of purchase and compliance certificates are invaluable.
- Update for inflation: Check the current retail price of your most important items annually.
- Ask the “what if” questions: Engage with your insurer or broker about what is covered and what is not covered. For example, if you drop your phone at the mall, are you covered?
The items we rely on most every day are often the ones least understood from an insurance perspective. By taking a proactive role in managing your risk today, you ensure that your insurance enables your financial resilience for tomorrow.
By Funeka Ngewu, Head of Claims at Momentum Insure