6 Things to consider after receiving that valentine’s gift

February is known as the month of love and, even in a pandemic year, billions of rands are expected to be spent on Valentine’s Day gifts, globally. For many, this month represents a time for emphasising the importance of the love in our lives. Interestingly, Picodi, an international e-commerce company, found men buy more expensive gifts than women do, with men’s average spend sitting at R 1027, versus women at R744. In total, a staggering 74% of South Africans celebrate the day of love, and 51% of women rate jewellery as their most desired gift. Another great gift you can give yourself? Peace of mind.

Marius Steyn, Personal Lines Underwriting Manager at Santam says, “We know Valentines’ Day gifts are especially sentimental – and maybe even more so this year – so it’s wise to protect valuable items with the right insurance policy, so you can easily replace them should anything happen.”

Whether it's a diamond engagement ring, the dream car you’ve been dying to drive or any flashy pair of shoes, hold your horses before you start showing off to your loved ones and friends. If you already have household content insurance, talk to your broker for advice on how you can insure your gift.

Steyn shares some tips on how you can cover your gift and have peace of mind if anything were to happen to it:

1. Adequate household content insurance: Ensure your household contents insurance is always sufficient to avoid being underinsured in the event of a claim.  
2. Insurance for items that are not always within the confinement of the home i.e. jewellery: Under the all-risks section of a policy, such items are limited to 20% of the total sum insured of clothing and personal effects. Should an item, normally worn or carried on a person, exceed the 20% limitation, it would be best to specify it under the all-risks section to ensure it has adequate cover.
3. When is the right time to insure your gift? It is always advisable to inform your insurer of any valuable additional items in your home. The insured amount of your contents is an estimation, so if you receive an expensive gift, it’s likely to be insufficient and it’s better to insure the gift under the all-risks section of your policy, which comes with an additional premium.
4. What to do if your precious gift is stolen/ broken before you insure it; will it be covered? It will be covered if the policy provides for house contents cover and the loss falls within the requirements of this section. Please be aware that underinsurance could be applicable and, in that case, only a percentage or proportional share of the loss or damage will be covered and the client will be responsible for the shortfall. If cover is needed away from the premises, the item can be specified under the all-risks section.  
5. Can you insure a sentimental gift: Unfortunately, sentimental value is not insurable, but the gift can be insured at its actual replacement value.

Steyn concludes that as the person receiving the gift, it’s best to get your own policy as soon as possible if you do not already have one. If you decide on having one policy between you and your partner, but you’re not the main policyholder but rather the additional insured, it’s up to your partner to pay you in the event of a claim, which could get difficult if you’re not together anymore.