Insurance is always the last thing on your mind when you receive a gift. Find out which insurances to consider after your thank you speech.

Gifts are an important part of our social lives, be it jewellery or a car, may be more valuable than others. Before you start showing off your new valuables, it is important to have it insured.

Marius Steyn, personal lines underwriting manager at Santam, suggests that, depending on the kind of valuable you have, you should consider the insurances mentioned below.

Household home contents insurance

According Steyn, you need to ensure that you have adequate household contents insurance. This is specifically designed for all your moveable assets on the property. Furniture, appliances, and clothes are some of the items that it covers.

The replacement value of your household contents is likely to change from year to year and should be updated in your policy. Some items, such as electronics, may have decreased in value over time, whereas others, such as art or furniture, may have increased.

It is critical that you do not underinsure. You cannot only insure half of your home contents and exclude the other half. If you do this, your insurer will pay out your claim proportionately, says Steyn.

All-risk insurance

Another important insurance to have is all-risk cover. All-risk insurance covers items that are not always in your house, such as your jewellery, laptop, and your cellphone.

All-risk insurance comes in two forms: Unspecified and specified. Unspecified will cover all the belongings that you take out of the house, and you don’t have to specify them. Specified all-risk insurance will cover those belongings you consider more important and you will have to specify them.

However, according to Steyn, sentimental value is not insurable. The gift can only be insured at its actual replacement value.

Car insurance

If you are fortunate enough to receive a car as a gift, it would be wise to ensure it’s covered in the event of theft, fire, or any damage.

It is advisable that you always choose comprehensive cover when you purchase car insurance. This will help you cover not only the cost of damages to your car, but also third-party damages.

What happens if you lose or damage your gift before insuring it?

If your gift is not insured, you will not receive the full replacement value from your insurer. This will leave you with the responsibility of paying a certain percentage or proportion of the damage. In order to avoid this, have your gift insured as soon as you receive it.

This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.