Many don’t know the difference between specified and unspecified items regarding their insurance coverage. But honestly, who does?
Specifying items in insurance coverage means you identify specific items or properties covered by the insurance policy.
These items could include your home, car, jewellery, or other valuable items.
A general *rule is that the more expensive your items, like your laptop or wedding ring, the greater the need to specify them in your insurance policy.
*Items such as laptops, cellphones, jewellery, etc., are at a higher risk of theft, loss or damage because they’re often on the move with you (in your car, on your person, worn as an accessory), thus the higher price tag on insurance and the greater need to specify them under a policy. This differs from things like a TV, an item fixed in your house.
The specifics of what is covered can vary widely depending on the type of insurance policy you have and the level of coverage selected.
By explicitly identifying the items you want to be covered, you can be sure that your insurance policy will protect you financially in case of unexpected events, such as theft, damage, or loss.
This article will help you identify the dos and don’ts of specifying items for insurance coverage, such as accurately selecting the items and not overestimating the value of your items.
Dos of Specifying Items for Insurance Coverage
Specified items insurance is designed to cover individual items that other types may not fully cover.
For instance, homeowner's insurance, which also goes by many other names, namely ‘home contents insurance’, ‘household insurance’, ‘home insurance’, ‘home and content insurance’ or ‘home & household content insurance’ might provide some coverage for personal property, there are limits to how much they will pay for individual items.
Specified items insurance, on the other hand, provides coverage for the total value of the item, as defined in the policy.
So how can you go about specifying and insuring your precious items? Easy.
#1: Do keep a detailed inventory of all valuable items.
Creating an inventory of all your valuable items ensures you don’t forget to identify any essential items your insurance policy must cover.
Your inventory should include a detailed description of each item, its value, and other relevant information.
Creating an inventory also allows you to determine your possessions' total value.
Also, by documenting each item, you can show that you own it and provide evidence of its value, which can help should you need to claim.
#2: Do update the inventory regularly to account for new purchases or changes in value.
Regularly updating your inventory ensures adequate insurance coverage.
By updating your inventory, you can identify gaps or overlaps in coverage.
This includes adding new items to the inventory as you acquire them and adjusting the value of existing items if their value changes over time.
You might even sell or give away some items or acquire new ones, so regularly updating your inventory can help ensure that your list of possessions is up-to-date and accurate.
Lastly, your insurance policy may change over time, so ensuring that your inventory is aligned with your current policy is vital.
#3: Do provide receipts, appraisals, or other proof of value for high-value items.
Having receipts of your items proves you own them and can help prevent disputes and guarantee you are compensated if the item is stolen or damaged.
Receipts, appraisals, and other proof of value can help establish the item's worth. This lets you confirm the amount you should be compensated for if you claim.
Providing the necessary documentation upfront can help ensure a claim is processed quickly and efficiently.
#4: Do discuss specific item endorsements with your insurance agent.
A specific item endorsement is an optional add-on to your homeowner's or renter's insurance policy that provides additional coverage for high-value items such as art, jewellery, antiques, or other expensive personal property.
Your agent can help you determine the appropriate level of coverage for each item and explain any restrictions or exclusions that may apply.
It's also important to review your policy regularly with your agent to ensure that your coverage is up-to-date and that your valuable items are still adequately insured.
If you acquire new high-value items or the value of your existing items changes, you should notify your agent and consider adding or updating specific item endorsements as needed.
Don’ts of Specifying Items for Insurance Coverage
We’ve already established that insurance coverage is essential for protecting your assets against unforeseen events such as theft, damage, or loss.
Every Yin has its Yang, so naturally, for every ‘do’ in specified insurance, there’s also an equally important ‘don’t’.
When insuring specified items, there are several things that you should avoid doing to ensure that you have adequate coverage and that your claim will be processed smoothly.
Here are some key "don'ts" to keep in mind when it comes to specifying items for insurance coverage.
#1: Don't assume all items are covered under a standard insurance policy.
Don’t become one of those people who assume that all their possessions are automatically covered under a standard insurance policy, as this is not always the case.
Most insurance policies have limits on the amount of coverage they provide for certain types of items.
For example, if you have a standard homeowner's insurance policy, it may have limits on the amount of coverage it provides for jewellery, artwork, or electronics.
So keep your eyes peeled and ensure you’re confident of what is and isn’t covered by your insurance policy.
Review your policy, understand its limitations, and consider purchasing additional coverage if necessary.
#2: Don’t underestimate the value of your possessions.
Another common mistake people make when specifying items is underestimating the value of their possessions.
Various reasons could be to blame, such as not keeping up with the current market value of an item or not realising how much it costs to replace the item if it’s lost or damaged.
Accurately assessing their value is essential to guarantee adequate coverage for your possessions.
This may involve getting appraisals, keeping receipts and documents of purchase, or researching to determine an item's current market value.
#3: Don’t forget to specify items that have sentimental value.
While it's essential to ensure that all your valuable possessions are fully protected, it's also important to remember that some items may have sentimental value that can't be measured in monetary terms.
These items may not have a high monetary value but may be irreplaceable. Examples of such things may include family heirlooms, photos, or other sentimental items.
Therefore, ensuring that you include these items in your insurance policy is crucial.
#4: Don’t wait until a loss occurs to specify items for insurance coverage.
Finally, it’s imperative not to wait until a loss occurs to specify items for insurance coverage.
Insurance companies will require proof of ownership and the value of the claimed items. Having this information will ensure the claims process and higher payout.
Therefore, creating an inventory of your possessions and regularly updating them is essential.
This inventory should include items, their value, and any supporting documentation, such as receipts or appraisals.
Don't have a Household or Home & Contents policy?
Not to worry, specified items insurance isn’t the only way to protect the items you love and need the most.
Insurance, like many other things, isn’t a one-size-fits-all creation.
So, suppose you’re not particularly interested in specifying items under your household contents and would only like to insure a select few items of value; there’s such a thing as all-risk insurance (also called single-items or per-item insurance), which may be the thing for you.
All-risk insurance is a standalone policy, so you can insure your goods under an entirely separate policy even without having a pre-existing household contents insurance policy.
All-risk insurance lets you insure your goods without lumping everything together under one policy i.e. just your cellphone, laptop and bicycle.
Check out Pineapple’s website to better understand All-risk insurance, get a quote and see how much you stand to pay in monthly premiums for one or more items of value at https://www.pineapple.co.za/all-risk.
In conclusion
Specifying items for insurance coverage is crucial to ensuring that your valuable possessions are protected against unexpected events.
Doing so involves creating an inventory of your possessions, updating the list regularly, providing proof of value for high-value items, and discussing specific endorsements with your insurance agent.
Additionally, it is essential not to assume that all items are covered by a standard policy, not underestimate the value of possessions, not forget to specify items with sentimental value, and not wait until a loss occurs to specify items for coverage.
By taking the time to specify items, you can ensure that your insurance policy provides adequate coverage.
Discuss any concerns or questions with your trusted insurance agent can help you make informed decisions about your insurance coverage.
By following these guidelines, you can ensure adequate coverage and peace of mind.
Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply. Premium is risk profile dependent.
Please Note: The information provided above is for informational purposes only; you should not construe any such information as legal or financial advice.
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