As we head toward the end of the year, it is a good time to reflect on some of the changes that have happened this year. We buy furniture, sell or give away other items and generally make changes to our households. Informing your insurer of these changes is a must before you head off on your annual holiday.
Take time out to thoroughly comb through your insurance policies. One unfortunate thing that no one wants to experience is to be underinsured or paying for insurance that you no longer need.
The information you provided at the inception or last renewal of your policy may have also changed during the year, and most insurers won’t pay your claim in full if significant information has changed without you informing them. Renewing your policy regularly will ensure that you are always fully covered and can save you money in areas where you no longer need cover.
Carolyn Thompson, Head of Personal Lines at Mutual Federal explains, “We advise consumers to diligently notify their insurers of any changes, such as change of address, if a different driver starts using your vehicle, a tracking device being removed or any other information that you’ve provided the insurer that has now changed.”
Insurance policies are different and consumers should therefore apply different treatments to it when reviewing policies:
- Car insurance – Ensure you don’t pay for credit shortfall cover if the value of your vehicle exceeds the amount outstanding on your loan. Always update your vehicle’s regular driver’s details.
- Household insurance – Check that the value that you are insured for is correct because being underinsured will result in your claim not being paid in full. Ask your insurer if your contents policy contains any exclusions you need to be aware of. You might also like to know if your jewellery and devices are included in the limits. Depending on the insurer these items may require additional cover.
- Allrisks – Doing a regular valuation on your jewellery may be required to ensure that you have sufficient cover. Imported items such as electronics, bicycles and phones have increased in price significantly and your limit will need to be increased regularly to give you the cover necessary.
Thompson concludes, “The next step is to ensure you receive updated renewal documents which you would need to read through carefully upon receipt. In the document, there may be changes to your terms that you should check and verify.”
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