ALL RISKS INSURANCE EXPLAINED

While the Household Contents Section on a personal [domestic] policy covers all moveable assets against fire, storm, flood and theft losses at the specified risk address [and the premium is based on that risk area and the security measures in place at that risk address], the All Risks Section covers the same losses, as well as accidental damage with respect to items insured under the All Risks section, anywhere in the world. All Risks cover is available as an extension of the Household Contents Section for –

UNSPECIFIED PERSONAL EFFECTS, which can generally be defined as items carried on and by the person. This would include the clothing, jewellery and the watch you wear and the handbag or baseball bat you carry when you leave the risk address. Or the suitcase full of clothing you take with you on a weekend away. Should you take up unspecified all risks cover for an amount of R5000, for instance, then it would mean that you have R5000 cover per incident, but a maximum of 25% of that sum per unspecified item lost in the incident. This percentage per item varies from insurer to insurer, but is a good example of the average. Therefore, should a watch worth R10 000 be stolen in the incident, the maximum you would be able to claim for that watch would be 25% of the R5 000 cover you elected for unspecified all risks cover. To provide full cover for more expensive items, such as this example watch, you can extend cover to

SPECIFIED ALL RISKS, and under this section you specify an item for the current new replacement cost of that item. If the watch is specified for R10 000, you will pay a premium for this watch and you will be paid the replacement value of the watch unless you insured it for less than the replacement value, in which event only the amount you insured it for will be paid.

There are certain ‘motor only’ type policies to which all risks cover can be added, but in all other cases it can only be added to a policy where the Household Contents section had been taken up.

Please do not hesitate to call us on 021 712 1385 should you require a quote for the extension of your policy to included all risks cover.

ETIENNE & ANTHEA de VILLIERS