Show me what is in your handbag and I’ll tell you how it should be insured!

Although no official surveys have been done, it is believed that in the United States, 1000 handbags and purses are stolen every 2 minutes. You can only imagine what the figure would be in South Africa!

How does one insure the contents in your handbag? It will cost you a fortune to specify each item individually and would be a whole lot of administrative work… if we’re being honest. In this article, we will look at how the different items in your handbag should be insured. Please note that policy wording and terms and conditions will differ between insurers.

The average handbag contains the following items: wallet, cell phone, a little bit of makeup, tissues and perfume. Depending on the brand, the above mentioned contents could easily amount to R15000 or more with the highest valued item, generally being your cell phone.

Let’s look at how you would cover these items under a standard personal lines policy:

The high value of the phone means that it needs to be specified separately to ensure that you are compensated for the full value of the phone. You need to supply your broker with the model of the cell phone, the value as well the IMEI number. You can dial *#06# to obtain your cell phone’s IMEI number.

The rest of the items with a lower value can be covered by taking out an “Unspecified All Risks” cover. This is for low value items that you carry around with you every day. The concept of this cover is that you have a sum insured, let’s say R20 000. From that sum insured you can claim for either a percentage or for a fixed amount per item up to the total insured amount as maximum per event. If you can provide proof of ownership of the lost item, the percentage will be 25% of the total sum insured. If you cannot provide proof of ownership, the maximum you will be able to claim for the lost item is R1 500.

 

Our advice, as always, is to contact your APBCO Broker to ensure the correct cover for your risk.

 

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