By George Mahlakgane
The festive season is a time for relaxation and cheerful spirits, but this does not protect us from dangers and disasters that can occur when we least expect it. And, in fact, given the festive spirit that many of us find ourselves in, we are not always diligently looking out for possible loss or damage, meaning that the instances are more likely to happen.
Tips that can help you navigate this festive season:
Make sure your car is covered
During the festive season, people also go into financial holiday mode, and this results in them neglecting their obligations, like paying their car premiums, making sure their licence disk is valid and their driving licence is in order.
Some even go as far as reversing the transactions made for their car insurance premiums and spending the money on a fleeting good time. They might later have to pay the price if disaster strikes and the harsh reality sinks in. A premium reversal is regarded as a dispute, which implies that you are disputing the insurance policy for your car and that means that you no longer need cover. George reflects on the recklessness of people who disputed their insurance premiums, thinking that they would make up for it during the following month, only to find out that their policy was no longer active.
Look after your property-related matters
Leaving your property, house, flat or wherever you live during the festive season requires you to take extra precautions because the risks are much higher when no one is on the premises. Always make sure that the alarm is on, and the doors and windows, as well as any other point of entry into your property, are well secured.
Replace faulty wires before you go on leave and ensure that your back-up power source is well installed. It is also important to be up to date with your property insurance premiums so that your belongings, as well as your interests, are taken care of in case disaster strikes.
George says that having traditional security for your property is not enough – you need building cover to remedy the damages caused by unforeseen circumstances, such as natural disasters.
Ensure that you have a personal all-risk cover
Most people are unaware that you can have your portable personal items insured, such as your travel bags, jewellery, clothing and shoes. Having a personal all-risk cover means that you will no longer have to replace your lost or stolen items out of your own pocket – the insurance company will compensate you with the value of the lost or stolen items.
You will have to specify the personal items that you want insured, as well as provide receipts with the value of the items to the insurance company. George shares an example of one of his clients, who had an expensive designer handbag collection that was stolen and was compensated with more than R300 000, thanks to her personal all-risk cover policy.
Pack your insurance border letter
When travelling outside the border, you must have your insurance border letters to ensure that your car and personal items are insured outside South Africa. Notify your insurance company of your travel destination, as well as the expected duration of the trip, so that you can be given the relevant documentation that will guarantee that your policy is enforced should disaster strike outside of your country.
George recommends indicating more travel days than planned in the document, in case you’re unable to return to South Africa within the given time frame, therefore resulting in your car and personal items no longer being covered.
You must rest and enjoy the fruits of the labour that you put in throughout the year, but it’s of equal importance to ensure that your assets are well taken care of. Make sure that your car, property and personal matters are adequately insured so that you’re not out of pocket after the festive season.
* Mahlakgane is one of Consult by Momentum’s advisers.
PERSONAL FINANCE