Make sure you insure those valuables

QUESTION: I went to Gitex last week and bought an expensive new mobile phone and laptop which I have been looking to purchase for ages. However, I am concerned about losing them or having them damaged or stolen when I'm out and about, what insurance do I need to cover this?

ANSWER: Buying a long-lusted after piece of technology that sets you back financially is one of the key times people think about protecting such important and visible investments from theft, damage and loss.

Luckily in the UAE the likelihood of theft is much lower than in other parts of the world, however it can happen.

Losing things, and unintentional damage, can happen to anyone at anytime, although some people are more prone to misplacing things than others. If you are one of these people then it can become highly expensive replacing mobile phones or laptops. So insurance is a good idea.

Your independent financial adviser will be able to give you the full details; however, if you want to make sure that your valuables are covered inside and away from your home, you will need to make special mention of them when you buy your home insurance.

You will probably have to take out a separate policy for Unspecified and Specified All Risks cover. That may mean you will pay a bit more for your policy, but it also means you won't be sorry if anything happens to your treasures.

Unspecified risk

Choose between Unspecified All Risks Insurance or Specified All Risks Insurance.

Unspecified All Risk Insurance covers a variety of items individually valued at less than a certain value (this depends from insurer to insurer)

These items change from day to day and therefore would be impractical to list them each time you need them covered. Specified All Risks Insurance covers individual items valued at more than a certain value (this would again depend from insurer to insurer)

Damage

Adding a mobile phone and laptop to your contents insurance can actually be the easiest and cheapest way to go. Personal effects are covered up to the limit shown on your policy schedule, these sums insured are nominated by you on your schedule, and insures one against loss, theft or accidental damage, which can cost under Dh200 per year.

Prior to confirming your insurance policy, check the cost of the excess, which can vary widely between insurers. In the event of a claim, proof of purchase or valuation will be required in order to settle the claim expeditiously.

Cover for fraudulent calls may also be a wise move; however most home contents insurance does not cover you for this and you may want to look at insurance against fraud as well.

Some insurance providers offer ‘fraudulent call' cover; however, this only covers you for calls made after you have reported the phone lost or stolen to your network provider. Currently fraudulent calls are not covered in the UAE but some insurers abroad offer this cover.

The other option is to take up one of the many insurance offers telecommunications and mobile phone operators suggest when they sell you the goods.

These insurance policies are specific to the product and the contract you are on, so it's wise to check that if you get a new phone as part of an upgrade or change your contract, your original insurance is still valid.

The writer is General Insurance Team Manager at Nexus Insurance. Views expressed here are the author's own and do not necessarily reflect that of Gulf News. If you have any questions, please email to advice@gulfnews.com