By Cynthia Kimola
The first time I was robbed my phone, I was devastated and angry. Angry because it meant I had to dip into my savings to buy another phone and unplanned expenses usually throw me off track. Close friends who found out what had happened left me feeling miserable with the “I hope you had insured it” statement. (I had not.)
The thought of insuring my valuables had never crossed my mind as I always assumed that domestic insurance policies were expensive and only designed for people who owned houses or had taken out mortgages. Back then it never occurred to me that a 20-something- year-old like me could afford the cover or even needed that protection.
Determined not to be found in the same predicament in future, I resolved to get an insurance policy for my valuables. I did my homework, asked around, got recommendations, made a few calls to insurance companies and to my great surprise, found that the policies were actually quite affordable. My annual premiums would range from Sh2,500 to Sh10,000. If I had known this earlier, I would have saved the Sh25,000 I had to fork out from my savings to replace my stolen phone. I would have simply obtained a police abstract, filled out a claim form and the insurance company would have paid out my claim.
Insurance policies, especially domestic policies offer you protection from risk and if you are self-employed it is important that you protect your tools of trade be it laptops, printers, phones etc. so that you don’t start from zero if the item is stolen or damaged. This is a lesson my photographer friend learnt the hard way one evening when he was going home from a photoshoot. He was attacked by thugs who stole his laptop, camera, lens and storage devices. This left him devastated as he had lost all client data as well as the equipment he uses to make a living. He had a lot of explaining to do to his clients and had to refund the deposits the customers had made and figure out a way to replace the stolen gear. This put a huge dent on him financially and he now insures everything he buys.
However before you settle on any domestic insurance, ask all questions and carefully read through your policy document before signing it so that you know what is covered and what isn’t. You don’t want any surprises when a problem occurs and you find out that it won’t be paid for. Domestic policies usually cover against burglaries, fires and damage but any carelessness on your part is not covered as it is meant for sudden or accidental problems. So damage caused by electric fault, termite infestation, mold, negligence, natural calamities such as earthquakes may not be covered but you may be able to add riders – add-ons that will cost extra — to get more protection. For example burst water pipes are generally covered but floods may not. You can however purchase an extra flood protection rider as backup coverage.
There you have it – err on the side of caution, and always insure your valuables!