With Black Friday around the corner, South Africans are gearing up for the year’s biggest shopping event. For many, especially women, it’s a time to refresh wardrobes and indulge in long-awaited purchases. But amid the rush for deals, do we truly understand the value of our possessions? More specifically, do we know the real cost of what we own?
Back in 2010, I wrote about the true cost of a woman’s wardrobe, and today, as the CEO of Ami Underwriting Managers, I find myself re-examining this topic from a different perspective. The retail landscape has evolved drastically with the rise of online shopping and major sales events like Black Friday. As the frenzy of consumerism takes over, it’s important that we make informed decisions about our spending—and also understand the actual value of the items we accumulate.
In 2023, Black Friday sales in South Africa reached R4.5 billion, despite a 21% drop in in-store purchases, with online shopping continuing to grow. This year, the trend of consumers being more strategic with their purchases is becoming more apparent. Shoppers are increasingly looking for bundle deals and substantial discounts, focusing on savings and prioritizing the best value for their money.
However, while we chase those discounts, it’s crucial to remember the value of what we are buying—and what we already own. During Black Friday, many people add significantly to their wardrobes, often without accounting for the worth of their current belongings. This creates a gap between the real value of their possessions and what’s reflected in their insurance policies. For women especially, the true value of clothing, accessories, and personal items is frequently underestimated.
At Ami Underwriting Managers, we regularly assess our clients’ possessions, and it’s surprising how often we find that wardrobes are undervalued—by as much as 50% or more. Many women are unaware of just how much their wardrobes are worth, especially when considering replacement costs. For instance, that designer suit you bought a few years ago for R2,000 may now cost R10,000 to replace due to inflation and changes in fashion trends. It’s easy to overlook these changes when calculating the value of your belongings.
A UK study by British insurer Liverpool Victoria found that the average woman values the contents of her wardrobe at around £1,840 (R22,000), while the true cost is closer to £7,000 (R84,000). Similarly, in South Africa, a woman’s wardrobe can represent a significant portion of her personal wealth—second only to her car and home. Ensuring these items are accurately insured is crucial. Although it’s rare that an entire wardrobe would need replacing, accurate valuations are vital to cover losses from events like theft or fire.
Most home insurance policies do cover clothing in cases of theft or damage, but the replacement value is often capped, leaving policyholders underinsured. For women with wardrobes full of designer items and quality accessories, it’s important to check that policies accurately reflect their worth. This includes not just clothes, but also handbags, shoes, and other items that can easily be overlooked.
To get a better understanding of your wardrobe’s value, it’s helpful to take a systematic approach. Divide your wardrobe into categories such as business, casual, evening, and sports attire, and remember to include accessories like handbags and shoes. Items stored away or rarely used also need to be accounted for. If you have expensive outfits or accessories, consider getting a professional valuation—a service we offer at Ami Underwriting Managers to help our clients understand the real value of their wardrobes.
Another key consideration is whether your insurance policy covers your handbag and its contents if it’s stolen outside of your home. Handbags often contain items of significant value, such as keys, cell phones, makeup, and wallets. Adding coverage for your handbag is a relatively inexpensive addition to your policy, yet it can save you thousands in the event of theft.
Black Friday is the perfect opportunity not just to expand your wardrobe, but also to reassess what you already own. While it’s easy to get caught up in the excitement of new purchases, taking the time to understand the value of your current possessions can make a big difference. You might be surprised at how much your clothing and accessories are actually worth—and how underinsured you may be.
Being proactive about assessing your wardrobe’s value can help prevent unpleasant surprises down the line. Imagine buying several new items during a Black Friday sale, only to find out later that they’re not adequately covered under your current insurance policy. By reassessing your possessions regularly and making sure your insurance coverage is up to date, you can enjoy the thrill of Black Friday shopping while maintaining peace of mind that your assets are protected.
As we approach this year’s Black Friday, let’s not only think about the deals but also about what we’re adding to our personal collections. Take the time to evaluate your wardrobe—what’s in it, what it’s worth, and whether your insurance covers its true value. This way, you can indulge in the excitement of new purchases knowing that you’re safeguarding your investments for the future.