Insurance secures women's assets...and their financial freedom

In a world of glass ceilings, gender pay disparities and limited employment opportunities, women have to work hard for what they earn and what they own - and that needs to be protected.

Short-term insurance that covers belongings, vehicles and businesses may feel like a grudge purchase every month but in reality, it safeguards these assets, offering women a measure of financial security.

This is vital, as in the event of damage or theft to a home, belongings or vehicle, covering these costs out of pocket can become exorbitant, eating into personal savings and financial independence.

That is a key consideration, as the risk landscape differs significantly between men and women. For one, the risk for women drivers is lower but their safety risk while on the road travelling alone is higher. Where the former might lead to lower premiums for car insurance, the latter makes insurance add-ons like roadside assistance, mechanical breakdown towing and emergency car ride services absolutely essential.

Another area where insurance needs differ is in the case of single mothers and other female-led households. Such families often live on strictly controlled household budgets. Sudden, uninsured asset losses like a car accident or home theft can devastate a family's disposable income for months to come.

Women also tend to be more underinsured than men. Because of ongoing gender disparities in the workplace, South African women tend to have less insurance, particularly when it comes to the amount of cover purchased for the premium secured and specifying insurance for big-ticket items like pieces of jewellery.

The contents of women's wardrobes, which often contain designer clothing, shoes and apparel, can necessitate might higher coverage than women think. In fact, women's wardrobes are one of the most undervalued assets, as the cost of replacing luxury items goes up every year, but many women fail to adjust their insurance accordingly. This results in underinsurance and less-than-satisfactory payouts when the time comes to replace lost, stolen or damaged items.

The cost of a woman's handbag and its contents alone can run into thousands, especially when the bag is from a designer label and contains jewellery, perfume or branded items like sunglasses. Even a handbag essential like car keys or house keys with sophisticated remote controls can push up a handbag claim substantially.

This points to the growing need for standalone handbag insurance cover, especially as handbags aren't safely stored at home during the day, which raises their risk of theft or damage.

Women's Month is a good time for women to review their insurance cover. The replacement value of clothing, jewellery, tech assets, handbags and their contents; the cover conditions for items not stored at home during the day; and excesses and the financial impact in the event of a claim, should all be reviewed. 

For women, insurance is more than just a box to check on the list of monthly must-haves. When used correctly, it acts as a silent protector for women's hard-earned personal and business assets, adding a much-needed layer of protection to their financial security and independence.