Ongoing fluctuations in the strength of the Rand against many major currencies has highlighted the importance of client’s conducting regular valuations on their insured goods to ensure that they will be in a position to adequately replace such items, particularly those purchased overseas, in the event of theft or loss.

 

According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, currency fluctuations are a particularly important issue in the high net worth segment as these client’s homes often contain an array of imported goods, which are costly to replace.

 

“Many of our clients have expensive tastes such as imported Italian tiles and carpets. In the kitchens especially, one finds it is important to have a proper valuation conducted as an imported Miele kitchen can cost as much asR500 000 to install. A fluctuation in the exchange rate on half a million rand can end up being a huge difference when it comes to replacing that kitchen.”

 

Fourie says that while it may not be practical for clients to re-value their entire contents every time the Rand dips or rises, it is a good idea if there has been a sustained period of Rand strength or weakness to look at the replacement cost of expensive goods in the home that have been imported.

 

“Clients sometimes forget that it is more expensive to buy certain electronic equipment in South Africa than overseas simply due to the import costs. However, doing a straight rand/dollar conversion is not adequate to determine the replacement cost here in South Africa, so it is essential that one has a proper valuation done.

 

Fourie also says that it is important to make sure jewellery is adequately insured for its replacement value, as there are differences in this segment that also need to be taken into account. “In the case of antique jewellery and other rare items it is not always possible to actually replace the item in South Africa, particularly with period jewellery. As such, one should always make sure that they have an accurate and up-to-date valuation certificate that includes the date at which the valuation was undertaken, the Rand to USD rate and the Gold price in USD at the time of valuation.

 

She says clients who own many items that are not bought locally, should keep track of currency fluctuations and make sure they contact their broker regularly to update their valuations. “It is also advisable to keep all slips as proof of payment and make sure these have beendeclaredat customs,otherwise theclaims may also not be entertained.”

 

“It is not the job of a broker to track the exchange rate of the Rand and constantly change a client’s policy; however, by making sure that everything is in order, all valuation certificates are up to date and highlighting the exchange fluctuations at an annual review of their client’s needs, one can really differentiate their service from other brokers,” concludes Fourie.

 

 

-Ends-

 

About MUA Insurance Acceptances

 

MUA Insurance Acceptances is a leading underwriter of personal lines insurance for the Executive motor, classic car and home market with policies catering for the specific insurance needs of high valued vehicles and high net worth individuals. MUA is a wholly owned subsidiary of Hannover Re through the shareholding ownership of Lireas Holdings (Pty) Limited and the risk is carried by Compass Insurance Company Limited.

 

For more information please visit: www.mua.co.za.

 

 

 

 

Christelle Fourie, MUA MD chats about importance of accurate value of contents insured, and the role of a specialist to determine the replacement value. Consider the importance of this in the event of a fire or a major burglary. Read all the fine print in your policy document to make sure that should one of your prized pieces of jewellery be stolen or lost that it will be replaced with the same jeweller. Make sure you have valuation certificates that are up to date and stored in a safe place such as a safe or in a deposit box at the bank, where its safe from fire damage.