This is not the time to compromise on your insurance

Consumers must not forget about insurance for their belongings at this time of year because relaxation and cheerful spirits will not protect them from the dangers and disasters that can happen when they least expect it.

It is important to ensure that your car is covered, that your home is insured against risks, that your portable personal items are covered and that you have an insurance border letter if you plan to cross the border, says George Mahlakgane, advisor at Consult by Momentum.

Mahlakgane shares these tips for consumers:

Make sure your car is covered

During the festive season people go into financial holiday mode and this results in them neglecting their obligations, like paying their car insurance premiums, making sure their licence disks are still valid and that their driver’s licences are in order.

Some even go as far as reversing the transactions made for their car insurance premiums and spending the money on a fleeting good time.

They might later have to pay the price if disaster strikes and the harsh reality sinks in.

Look after insurance for your property-related matters

Leaving your property, house, flat or wherever you live during the festive season requires you to take extra precautions because the risks are much higher when there is nobody on the premises. Always make sure that the alarm is on and the doors and windows, as well as any other point of entry into your property, are well-secured.

“Replace faulty wires before you go on leave and ensure that your backup power source is professionally installed. It is also important to be up to date with your property insurance premiums so that your belongings, as well as your interests, are taken care of in case disaster strikes”

Mahlakgane emphasises that having traditional security for your property is not enough. You also you need building cover to remedy the damages caused by unforeseen circumstances, such as natural disasters.

Ensure that you have a personal all-risk cover insurance

“Most people are unaware that you can have your portable personal items insured, such as your travel bags, jewellery, clothing and shoes,” says Mahlakgane.

“Having a personal all-risk cover means that you will no longer have to replace your lost or stolen items out of your pocket – the insurance company will compensate you with the value of the lost or stolen items.”

You will have to specify the personal items that you want to be insured, as well as provide receipts with the value of the items to the insurance company.

Mahlakgane says, for example, one of his clients, who had an expensive designer handbag collection that was stolen, was compensated with over R300 000 thanks to her all-risk cover policy.

Pack your insurance border letter

When you travel over the border, you must have your insurance border letters to ensure that your car and personal items are still insured outside South Africa.

“Notify your insurance company of your travel destination, as well as the expected duration of the trip so that you can be given the relevant documentation that will guarantee that your policy is still in force should disaster strike outside of your country.”

Mahlakgane recommends indicating more travel days than planned in this document in case you are unable to return to South Africa within the given timeframe, as a delay can result in your car and personal items no longer being covered.

“You must rest and enjoy the fruits of the labour that you put in throughout the year, but it is of equal importance to ensure that your assets are well taken care of.

“Make sure that your car, property, and personal matters are adequately insured so that you are not out of pocket after the festive season.”

A premium reversal is regarded as a dispute, which implies that you are disputing the insurance policy for your car and that means that you no longer need cover, Mahlakgane says.

He just shakes his head when he thinks about the recklessness of people who dispute their insurance premiums thinking that they would make up for it during the following month, only to find out that their policies are no longer active.

This article was first published here.