5 tips for insuring high-value possessions this holiday period 

Storefronts are decked out, shopping centres are buzzing, and Christmas music is following you like an (un)wanted shadow – the festive season is here! The holiday period is a wonderful time of giving and receiving, where many may be lucky enough to receive a valuable gift or two from loved ones. Whether it's a timeless piece of jewellery or the latest tech gadget, lavish festive spoils require protection.  

According to Marius Kemp, Head of Personal Underwriting at Santam, the reality is that unforeseen incidents can happen at any time, and the financial impact of replacing or repairing these expensive gifts can be significant.  

“Comprehensive insurance is key to ensuring no one is out of pocket if something happens to your new gift. These high-value gifts tend to be portable, making them especially susceptible to risks like theft or armed robbery”.  

“Unfortunately, South Africa’s already-high crime rates increase by as much as 30% over the festive period, so it’s critical to make sure all gifts are covered by insurance as soon as they come into your possession.”

Kemp shares five details to consider when insuring high-value items:

1.     Check that your home contents are insured away from your premises. While many items are automatically protected by an existing household policy when inside your home, additional measures may be necessary if they are taken outside of your premises. High-value items are naturally at greater risk when taken out of secure locations, and ensuring they are clearly specified in your policy will provide peace of mind wherever you go. If you expect to be travelling internationally and want to take your new gift along, there are also bespoke policies that offer  flexible worldwide cover options.

2.     Get your item valuated properly. When it comes to getting a new gift insured, a good valuation is critical. Accuracy is important here, so make sure the insured amount is adequate to replace the item with a similar new one. This is particularly relevant for items like jewellery or watches, which can have fluctuating market values.

3.     Review your existing insurance policy to check if it covers the item. If you already have a policy in place, review your current home contents sum insured to see if it accommodates the new item. Adjust the policy or specify the gift as needed to maintain adequate coverage.

4.     Specifying an item involves providing detailed information to your insurer. You’ll need to supply a full description, including make, model, serial numbers, and the replacement value of the item. Proof of purchase or a valuation certificate not older than two years is also required for items like expensive jewellery.

5.     Document everything. To simplify the claims process, Kemp advises documenting the item thoroughly when specifying it in the policy. Photographing your gift or, for jewellery, taking photos of you wearing it, along with receipts or recent appraisals, can make a significant difference at claims stage.

Common exclusions to be aware of

For high-value items, understanding policy terms is critical. “Familiarise yourself with all the terms and conditions to avoid any surprises during a claim,” Kemp advises. “Some policies, for example, may exclude specific scenarios, such as gradual wear and tear, so be sure to read all the fine print.”

It’s important to remember that insuring your festive season gift isn’t just about financial protection – it’s about preserving the sentimental value attached to it. “Comprehensive insurance not only safeguards your valuable items but also gives you the reassurance that you’re prepared for the unexpected,” Kemp concludes.