You’ve finally splashed out on that smartwatch you’ve been saving up for, received a beautiful set of gold earrings for your birthday, bought a smart TV, or joined the growing ranks of drone owners.
You can’t wait to start using or wearing your exciting new item, but how do you make sure it is adequately covered?
Ask the right questions
Do you only need cover at home?
Will you be wearing or carrying your new gear outside your home?
No … If your item will never leave your house, you only need cover for it at home. Check if it is insured under your household contents insurance and that your protection is sufficient. If not, ask your broker to add additional cover.
Yes … If you’ll be wearing or carrying around your valuable new possession when you go to work, play sports, hit the town or go on holiday, household contents insurance is not enough. You need to insure the item under “all risks”.
What is the next step?
Determine what type of all risks cover you need. Your smartwatch, earrings and drone may all fall into different categories:
1. Unspecified All Risks
Your new earrings (along with personal effects such as clothing, your watch and your handbag) fall into this category. Your item is automatically covered, but your policy will specify a limit on the amount you may claim.
What to do: Check your policy. If your jewellery’s value exceeds the limit, you may need extra cover.
2. Specified All Risks
Your smartwatch – and items like smartphones, laptop computers and other electronic equipment – may need to be specified under all risks so that they are covered in full.
What to do: Provide your broker with the serial number of your smartwatch and its replacement cost. For certain items, you may also need to provide a professional valuation certificate.
Specialist cover
Cover for your drone while you fly it, or photography equipment that you use for financial gain falls into a different category. These high-value or high-risk items usually do not qualify for standard specified or unspecified all-risk cover and need specialist cover.
What to do: Contact your broker to discuss your options. These will vary depending on whether you plan to use your drone solely for recreation, or for commercial purposes. (See below.)
Drone insurance
Will you be using your drone purely for fun or for gain?
Recreational use: You will be able to insure your drone under household contents cover. This means that it will not be protected once it leaves your house and is “in use”. If you need cover away from home, you can specify it, but you still may not be covered while it is used. You can expand your coverage options by getting your remote pilot licence and being registered.
Commercial use: If you’re registered as a commercial drone pilot with a remote pilot licence you should qualify for tailored commercial drone insurance. Check with your broker.
* Look out for the next instalment of our series on #InsuranceTips – Tip 11 for a comprehensive guide to drone insurance.
All Risks points to ponder
- Is your smartwatch regarded simply as a timepiece, or as a computer, under your all risks cover? If it’s the first option, it will be covered under unspecified all risks; if it’s the latter, it may have to be specified. Check your policy or ask your broker.
- Are your hearing aids covered? Sophisticated hearing aids make use of digital technology, software and sometimes even apps, meaning your insurer may view them as electronic devices that need to be specified under all risks. Ask your broker.
- Are your new bicycle and golf clubs protected while you use them during a sporting event? Check, and specify them under all risks if necessary.
- What are your all-risk policy requirements? You may have to lock unworn jewellery in a safe or carry it in hand baggage when you board a plane to ensure it is covered.
- Have you provided your broker with up-to-date valuation certificates for items such as gold, silver, and platinum or precious stones? Failure to do so may affect future claims.
- Are you covered while travelling? All risks insurance generally covers you worldwide, but there may be restrictions. Check with your broker.
The bottom line?
Never assume that all risks cover is automatic. Make sure your exciting new possession is adequately protected and specified if necessary.
Link to other helpful tips: #InsuranceTips – Tip 5: protecting your art and collectables
For some valuable items, all risks cover is not sufficient. You may want to insure that antique jewellery piece on an agreed value rather than a replacement value. Or you may need specific insurance cover if you are removing your art from your home to display it at an exhibition.
Are you following us on Twitter and LinkedIn for real-time updates?
