20 August 2018: These days, buying a car or getting a new laptop without getting adequate insurance is regarded to be financially irresponsible. Yet, many South African women walk around on a daily basis wearing the finest quality weaves, dressed head-to-toe in designer apparel, and carrying one of their many luxury handbags – items that are all commonly underinsured, if insured at all. Considering we live in a country with a high crime rate, not being properly insured is simply reckless.
Tarina Vlok, General Manager of Elite Risk Acceptances – an innovative short-term insurance start-up providing bespoke solutions to high net-worth individuals – says that while there’s absolutely nothing wrong with splurging out on luxury items, women need to consider the various risks they are exposed to and decide what level of risk they are comfortable to carry themselves.
“Managing and transferring the risks we face on a daily basis is an important component of managing our financial health. We at Elite completely understand that having that latest Louis Vuitton purse on your shoulder contributes to your personal brand, but we also know how much it can set you back financially and would hate to see it undervalued.”
Women need to ensure that their handbags as well as its contents such as cellphone, tablet, makeup and perfume are correctly and comprehensively covered. “The Elite policy has an automatic extension under the contents cover, which covers a percentage of any of the contents of your home while away from your residence, anywhere in the world and against any sudden and unforeseen eventuality. This means that your handbag, along with all its precious contents, will be fully covered while you are on the go.”
Vlok highlights the importance of insuring all items for their replacement value, not the purchase price, to avoid running the risk of being underinsured when lodging a claim. “If you inherited your mother’s Burberry coat which was bought 20 years ago at the equivalent of R3 500, it is important to remember that that coat is replaced at R35 000 today and should therefore be insured for R35 000.
“In cases where we buy expensive items of clothing or accessories, women often don’t tell their partners (who may be in charge of the finances) about their new acquisitions. In these cases clients run the very real risk of being underinsured and therefore need to ensure that all their new and expensive designer purchases are included under their Contents value.
“Ladies must, however, pay particular attention to items of clothing that may not be covered or are restricted under their insurance policies. Some policies, for example, may not cover leather jackets or furs under their general all risks sections. The Elite policy carries no such restrictions or exclusions.”
Aside from financial security in the form of adequate contents cover, another important consideration for women is personal safety. “Whether you have a vehicle breakdown or accident, a sense of safety is essential whilst waiting for help to arrive. As well as comprehensive cover, women should always opt for an insurer that offers value adding services such as roadside assistance and support with security. That’s why at Elite, roadside assistance is embedded into every active policy. Our app allows clients to track where their assistance tow, courtesy car rental (or other service) is and when it will arrive.”
While bigger-ticket items would understandably be top-of-mind when it comes to an insurance policy, Vlok concludes that there is no minimum value when it comes to getting insurance. “The bottom line is that any item of clothing or cherished belonging – no matter what the value – that you do not have the appetite or ability to replace yourself, should be insured.”