Handmade soaps and socks are always a win. However, if you plan to really spoil dad on his special day, then you might want to investigate the insurance implications as well. Nifty new gadgets can come with considerable price tags, which may make them prime targets for theft.
Marius Steyn, Personal Lines Underwriting Manager at Santam says, “We understand that Father’s Day gifts can be sentimental and costly, so it’s usually a good idea to protect valuable items with adequate cover, so you can easily replace them if anything goes wrong.”
Ask dad to hold his horses before he starts showing his friends the latest gaming console, his dream coffee machine with all the trimmings, or that flashy pair of cufflinks. Ensure that an existing household contents policy is updated to include the new items and remember to get additional cover for things that’ll leave the home.
Here are Steyn’s top tips on protecting special Father’s Day gifts:
1. Get adequate household contents insurance:
Ensure your household contents insurance is always sufficient to avoid being underinsured in the event of a claim.
2. Have insurance for items that may leave the home, i.e., jewellery, watches, cell phones etc.
It would be best to specify an item of value under the all-risks section to ensure it has adequate cover.
3. When is the right time to insure your gift?
It is always advisable to inform your insurer of any additional valuable items in your home. The insured amount of your contents is an estimation, so if you have purchased or received an expensive gift, the current amount is likely to be insufficient and it’s better to insure the gift, which comes with an additional premium.
4. What to do if your precious gift is lost, damaged or stolen before you insure it; will it be covered?
If the item is in your home, it will be covered if the policy provides the relevant type of cover under the house contents section and the loss falls within the terms and conditions of the policy. Please be aware that underinsurance could be applicable and, in that case, only a percentage or proportional share of the loss or damage will be covered.
The client will be responsible for the shortfall. If the loss occurred away from your insured premises, the loss will not be covered as the items needed be specified under the all-risks section of the policy.
5. Can you insure a sentimental gift:
Unfortunately, sentimental value is not insurable, but the gift can be insured at its actual replacement value.