Guarding Your High-Value Purchases Against Local Risks
Protecting What You’ve Won
New homes and higher-value vehicles are the most common “big ticket” items for lottery winners. In Trinidad & Tobago, these assets face specific environmental and security challenges. Proper property protection isn’t just a requirement for a mortgage; it’s the only way to ensure a single disaster doesn’t reset your financial progress.
The “New Car” Habit
One winner bought his dream SUV with his Lotto winnings. He initially only paid for “Third Party” insurance because it was cheaper. Two months later, the car was stolen from a mall parking lot. Because he didn’t have “Comprehensive” cover, he lost the entire value of the car. He realized that insurance is the price you pay to keep what you own.
1. Home & Buildings Insurance
Local policies are usually split into Buildings (the structure) and Contents (your belongings). For winners with high-value electronics, jewelry, or new furniture, ensuring both are covered is critical.
- Catastrophe Perils: This includes Earthquake, Hurricane, and other catastrophe perils. In T&T, these carry a small “excess” (what you pay first), so always keep a little cash ready.
- Flood & Water Damage: Essential for low-lying areas. Note that some local insurers may decline flood coverage if the property is in a high-risk zone, so check your policy carefully.
- Theft & Burglary: Most T&T insurers require “burglar-proofing” on windows or alarm systems to make sure this part of your cover is active.
2. Comprehensive Motor Insurance
If you’ve upgraded to a newer or luxury vehicle, basic “Third Party” insurance is no longer enough. Fully Comprehensive coverage from T&T providers (like Maritime, Trinre, Tatil, among others) protects your investment regardless of who is at fault.
- Agreed Value: Request an “Agreed Value” policy so you are paid exactly what the car is worth, rather than a lower “market value” if it’s totaled.
- Special Perils: Ensure your motor policy includes “Special Perils” for flood and hurricane damage, many cars are lost in T&T flash floods every year.
- Windscreen Cover: Usually a free add-on that lets you replace a cracked windscreen without losing your “No Claim Discount” (NCD).
Strategic Property Planning
Don’t wait until a rainy season or a break-in to realize you are under-insured. For frequent winners, using a small portion of wins to maintain the highest level of coverage is a vital defensive move.
Full Replacement Cost
Always insure your home for what it would cost to rebuild it today, not just what you paid for it years ago. Construction costs in T&T change quickly.
Contents Checklist
Make a list of every high-value item (TVs, appliances, jewelry) you buy with your wins. If you don’t declare them, they might not be covered.
Maintain Your Shield
Never let your policy “lapse.” One day without insurance is always the day an accident happens. Use small wins to pay premiums early.
💡 The “Under-Insurance” Trap
In T&T, if you insure a $1 Million house for only $500,000 to save on premiums, you are “under-insured.” If you have a partial loss (like a kitchen fire), the company may only pay a portion of the claim. Always insure for the full value.
🛡️ Protecting Your Habits
Maintaining your property is a part of playing smart. Responsible habits ensure your assets stay in top condition:
- Install burglar proofing and alarms to lower your premiums.
- Keep your gutters clean to prevent preventable water damage during rainy season.
- Install fire extinguishers and smoke detectors.
