When insuring your hobby or sport makes total financial sense

The outbreak of Covid-19 in South Africa and the various levels of lockdown that came to characterise the ’new normal’, have had a profound effect on how South Africans socialise and occupy their spare time. Gradually, under lighter restrictions, people have started to head out, but social distancing still applies, and there is a pervading sense of wariness around meeting in large groups. Add to this the heightened awareness of health, well-being and the importance of achieving those ‘bucket list’ items, it should come as no surprise that many people have decided to embrace new sports and hobbies, particularly ones that involve the outdoors.

South Africans take to the outdoors
Recently, Sandton wealth intelligence firm New World Wealth, and luxury lifestyle development Steyn City Parkland Residence, collaborated to conduct a survey on the top hobbies, with a particular focus on high-net-worth individuals. They found that, as a result of lockdown restrictions, many South Africans headed to the golf course, where social distancing measures are easy to abide by.

High-net-worth individuals are not the only ones taking to the outdoors. Recently, more South Africans have taken up new hobbies like running, mountain biking and stand-up paddle-boarding. Some of the other top hobbies, according to the review, included collecting fine wines and fine art, as well as hunting. Hobbies like online and video gaming as well as photography have also entered the fray.

But, what if…?
What all these hobbies have in common, is that they involve purchasing expensive equipment, which begs the question: what happens when these high-value items are accidentally damaged, destroyed or stolen? Not many people are aware, for example, that street muggings are now the second most common crime experienced by South Africans.

For peace of mind and a sense of security, it is advisable for people who have taken on these new hobbies and sports, to first and foremost ensure their safety by being aware of their surroundings and any potential risks. However, they also need to make sure that their new equipment is properly insured. Any high-value movable items must be specified under an All Risks policy, and depending on the value, any accompanying equipment too.

It all adds up
Additionally, South Africans spare little expense when it comes to investing in the latest sporting technology and hobby equipment. Wearable technology for runners, for example, can cost in excess of R20 000. Golfing is a notoriously expensive sport, with basic golfing kits averaging from R6 000 to R20 000. Even indoor activities can require a substantial outlay, with equipment like sewing machines and overlockers reaching levels of around R6 000 per machine. The value of these items, coupled with other related expenses, can certainly add up. And with higher value comes a higher risk, which is why insuring your new hobby is essential.

When hobbies become side hustles
There is also another dimension of this reality to consider, which is that many South Africans, especially during lockdown, found ways to monetise their hobbies as a way of earning extra income. Avid photographic hobbyists, for example, found ways to turn their skills into a side hustle. Photographic equipment can be extremely expensive, with top-of-the-range cameras costing in excess of R25 000.

What’s more, with budgets being stretched during lockdown, many South Africans opted to buy this kind of equipment on credit, further exacerbating the potential impact if equipment is lost or stolen. Insurance will be key in providing a safety net when things go wrong, putting you back in the position you were in before the loss occurred. But it is essential to make sure you’re adequately covered for the correct replacement value.

Tailor-made insurance is a must
In a world where we all need to be prepared for the unexpected, insuring a hobby or sport is essential, particularly when you consider the risks involved in incurring damage to such expensive equipment.
Coverage will vary according to a range of factors – including the value of the equipment, how and where it is stored, as well as other risk factors involved in transporting the equipment to and from various destinations. For instance, if you use your new mountain bike purely for recreational activities in your surrounding areas, your insurance needs will differ from someone who is competing in races around the country and needs to transport their bicycle (and maybe some spare parts) to each venue while staying in hired accommodation.

Speak to your adviser about your options and make sure that the next time you head out for a day of fun or for a race, you’re covered, no matter what happens.