Specifying electronic items – what value is correct?

all risk insurance

There are a few things in life that are guaranteed…

Death, taxes, and a new iPhone model every 6 months. The last of these, is a frustrating by-product of a society that is fixated on the new best thing. As an insurance broker, it makes it even tougher to ensure that a client has his or her electronic item insured at the correct replacement value when a disaster occurs.

The rate at which companies are producing upgrades is unprecedented in our history. What you need to know from an insurance stand point is as follows:

  • Always insure your electronic items for the cost of replacement (and not the Black Friday or ‘Falling off the Back of the Truck’ special you purchased the item on)
  • Should your item be made redundant and is now upgraded by another item, insurance will upgrade you to the new item provided that your Sum Insured is sufficient

Remember, insurance is taking a real world item and placing a financial value on it. It is the duty of the client to ensure that any item they have specifically insured on their policy is adequate to replace the item.

Insurance brokers are purveyors and conduits of the insurance rulings and should always inform you of these pitfalls, but ultimately it is your responsibility to ensure that your Sum Insured is sufficient should you need to replace it.

Should you be at all concerned about your electronic items and if you are properly insured or not, please drop us a line at info@winsure.co.za or call us on 0861 999 032 – we will be glad to help you.

ryan walsh