Here’s a resolution worth writing down: Review your insurance
This year, I’m definitely going to save more money.’ It’s one of the great New Year’s resolutions (along with going to gym more often, losing weight and quitting smoking). But along with cutting back on unnecessary expenses, making sure that your insurance fits your needs will go a long way towards making 2020 your most prosperous year yet.
In fact, one of the most important New Year’s resolutions you can make this year is to conduct a thorough review of your insurance cover while you’re doing your budget. It doesn’t just help you save money, it also gives you peace of mind if your home and belongings are fully protected.
“Many people set up their insurance policies, and then forget about them,” says King Price’s Wynand van Vuuren. “Bad move. If you don’t keep your policies up to date, you could be paying too much for insurance you don’t need – or worse, find yourself exposed or under-insured when it comes to claiming a few years down the line.”
Here are five ways to make sure you’re getting the right cover for your needs, at the best price.
- Check that your insurance reflects your lifestyle. Moved to a new house recently? Got married (or divorced)? Changed jobs? If your personal circumstances have changed in any way in the past year, it’s important – no, critical – that you update your insurance accordingly. These details could have a major impact on your claims or premium. That includes the correct addresses for where your car is parked, both during the day and at night, and that your insurer knows how much mileage you do in an average month.
- Make sure you’re covered on the road. Are your cars a year older, but you’re still paying last year’s premium – or higher? That’s less than ideal. It’s always worth reviewing what you’re paying for your car insurance. *Have the values been amended by your broker or insurer.
- Review your home contents cover. This is a great time to update your home inventory, says Van Vuuren. The key here is to make sure that you cover your home contents for their current replacement value. Don’t guess. And remember, insurers can only protect what they know about. It helps to keep the original receipts for items like jewellery, laptops and big screen TVs, so that you can prove their value if you need to claim. * To help you value your home contents correctly, request a home contents inventory form from your broker.
- Keep the roof over your head watertight. A building’s market value (what you buy or sell it for) isn’t the same as its insured value. Make sure you have enough insurance to rebuild your home entirely, if you need to. If you’ve made major improvements to your home, such as adding a new room, tell your insurer – or risk being underinsured. Buildings insurance should cover what it would cost to rebuild your property from the foundations up, including your boundary walls, solar panels, swimming pool, taps and tiles. * as well as add approximately 25% to value for professional fee’s such as architects etc.
- Combine your policies. Insurers love clients who have more than one item policy with them – and they’ll generally reward you with a discount. So, if you cover your home contents and a car, for example, with one insurer, you’ll probably pay less. You’ll also benefit from a multiple car discount if you cover two or more cars – up to 20%, in some cases.
Disclaimer: I&DRS will always offer the best advise possible , however policies and insurers do differ in some regards . Therefore, the information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice, alternatively contact our office on (011) 484 9401 for a specific needs analysis and record of advice to be done.