The summer holidays are a great time to take a look back at the past year, reassess and start making plans for the future. Many of us create a resolutions list to get on top of things in the coming year, including money matters, personal life or work. Did you know your insurance arrangements need a to-do list too? Here are nine things you need to make your ‘New Year insurance resolutions’.
- Read your renewal
Most polices renew each year and it’s important to understand that your policy details and premium may change. It’s always a good idea to read over your renewal policy details so that there are no unwelcomed surprises when it comes to your cover or your payments.
- Update your policy
Look at the level of cover you’re getting right now and consider whether this is enough. Think of anything that changed in the past year: whether you’ve made any big purchases, received expensive gifts, completed house renovations or added extra features to your property. Do they need to be covered? Get in touch with your insurer and give them an update on any changes that may affect your policy (if in doubt – ask!).
- Make sure your home is insured for its rebuild cost rather than its market value
A common mistake is insuring a home for its real estate value, rather than the cost of rebuilding it. Real estate price is affected by many factors and may not reflect the actual rebuild cost of your house. If you’re not sure what your rebuild cost would be, you can use a sum insured calculator to help estimate it, or get in touch with a registered valuer, builder, architect or quantity surveyor for help calculating it.
- Look beyond the price when it comes to your insurance
Let’s be honest, insurance is not everybody’s favourite purchase and it’s tempting to arrange it at the cheapest rate. While many products out there aim to offer the same level of cover, some would include benefits that others don’t. Although the price is still important, it shouldn’t be the sole factor when purchasing a policy. Take time to understand the level of cover you get for the premium you want to pay.
- Consider package discount or bundling
If you have two or more insurance policies, consider whether you can get a package discount. Not only can you save money, it can also make life easier having all your insurance policies with one insurer.
- Understand exclusions
Many people don’t realise that all policies have exclusions – things the policy does not cover. It’s always a good idea to take a look at your policy wording, paying close attention to the exclusions as different insurers can have different exclusions.
- Estimate the value of your possessions
A common mistake people make is underestimating the value of possessions and not realising how much they actually cost. It’s important to account for the cost of things like furniture and electronics and how much it would be to replace them. Use our Contents calculator to help you work out the sum insured.
- Keep records and proof of purchase
Every time you buy something new that’s of significance to you, make it a habit to file the receipts. You can do this electronically by scanning it, or by keeping the hard copy. Then, in the event of a claim, it will help you estimate the loss and provide proof of purchase quickly and easily. It is also a good idea to keep a record of what you own, including photos and any other relevant information, especially for unique or unusual items.
- Get on top of home maintenance tasks
Insurance is designed to cover sudden, unexpected loss. Take time to inspect your property and carry out regular maintenance tasks to avoid any issues at claim time