Student smarts - Insure the things you can’t afford to replace

The phone that decides to stay behind when we get out of the Uber… The laptop that thinks it needs a coffee as much as we do… The expensive sunglasses that choose not to go home with us after a lovely long lunch…

We all know the sinking feeling that happens when our precious things are lost, stolen, or accidentally damaged. But the good news is that portable possessions insurance protects you from the financial fallout when things go wrong.

Wynand van Vuuren, client experience partner at King Price Insurance, says that all students should insure the valuable items that they take with them when they leave the house. “A valid claim for the precious portable items that you normally carry with you will help to ensure that they can be repaired or replaced when life happens. And, what’s more, it covers you wherever you are in the world.”

What are portable possessions? They’re the things that you take outside or off your property – like your phone, laptop, engagement ring, and gym bag.

While taking out insurance for these items is simple, there are two things to bear in mind. The first is that there are two types of portable possessions cover – specified and unspecified – and it’s your responsibility to ensure that your stuff is covered correctly:

• For unspecified portable possessions, you decide on an insured value that’ll cover your losses in any one incident. Within this combined value, you can cover 1 single item up to a maximum of R2,000.
• If a portable possession is worth more than R2,000, it should be specified. Examples include watches, expensive clothing, shoes and bags, electronics, and golf clubs.

Van Vuuren notes that some portable possessions, like cellphones, bicycles, and prescription specs and sunglasses, can only be insured as specified items.

The second thing you need to know about portable possessions cover, is that it’s not ‘stand-alone’ cover. “You can’t only insure your portable possessions. You first have to insure a car, building, or home contents. As a student, your car, and your furniture and appliances are likely to be your priorities, and insuring them is a smart move. Just remember, though, that you can’t insure home contents if you live in a commune or have a shared living arrangement.”

One option is to take out insurance in your name, and another is to ensure that your things are covered under a parent’s policy. Either way, it’s critical to supply your insurer with complete and correct information, and to make 100% sure that you understand your cover. It’s always a good idea to read through the policy document, get to grips with the Ts and Cs, check your details on your policy schedule, and update them when things change.

“Studying brings enormous responsibilities. But, student life should also be a fun, carefree time. Having the correct cover for your precious things goes a long way towards relieving some of the burden and giving you the peace of mind that comes with knowing your insurer has your back in times of expensive losses,” says Van Vuuren.