13 June 2018: If you have, or are considering engaging in an expensive hobby such as Mountain Biking, flying model aeroplanes, collecting coins or artwork, being aware of the risks you carry and having adequate cover in place is essential to avoid financial loss.
Elizabeth Mountjoy, Private Wealth Manager at FNB Insurance Brokers says the first thing you need to understand is the niche types of cover required for your specific hobby and identifying an underwriter who specialises in covering such risks.
This is to ascertain that the insured asset can be covered for its full replacement value, as soon as it is taken out of your home.
Mountjoy says correctly insuring expensive hobbies can prove to be quite complex, leaving room for error if you try and manage it yourself. Therefore, it is essential to consult an experienced broker who can help ensure that you have covered all possible risks.
For example, there is a lot that you can overlook when trying to insure an expensive MTB bicycle valued at R250 000.
She says for expensive assets of this nature, there are a number of considerations that should be taken into account, such as travel insurance as well as tools or replacement parts to restore and rebuild the bicycle should it be partially damaged.
“As a result, a broker can assist you in correctly valuing the asset to ensure that you are fully covered in the event of a peril,” says Mountjoy.
“Although art purchases, for instance, would have an invoice to indicate the value, it can be difficult for an individual to determine a replacement value for an item they have painstakingly built up for months,” she adds.
A further consideration which can easily be overlooked when insuring a hobby is to get liability cover. The easiest way of doing this is by joining an association or club which could potentially offer this cover at discounted premiums.
For instance, when flying model aeroplanes you need to have personal liability cover to protect yourself in the event that damage or injury is caused to a third party property or individual.
“Lastly, if you have a hobby that requires you to provide advice or you are trading or swapping in items of a particular hobby; it is wise to contact your broker and find out what liability cover they can provide you,” concludes Mountjoy.