Short-term insurance resolutions to keep in 2019 to ensure cover

January may already be well under way, but it is never too late to assess your cover and put some good practices in place for now and the year(s) ahead.

PSG has pinpointed some short-term insurance resolutions to follow now and always to keep your cover consistent.

I will stick to my declarations

Keep in mind that what you declare to your insurer, you need to practise.

Perhaps you swapped cars with your spouse but forgot to switch who is the regular driver on your policy.

It is best to check that the way you are operating in your daily life mirrors what your policy says – that your vehicle is noted for business or roaming if you drive around a lot for work, or park at your office.

The same can be said for your security features at home.

If you have an alarm, it needs to be activated. If you have a locking garage, it needs to be locked.

Your insurance premium is based on your risk profile, which needs to be honest and accurate, taking into account your real situation.

I will not underinsure my contents

Your insurer will only pay out a claim proportionate to the sum insured and if you have underestimated the value of your household contents, it can be a costly mistake.

If for example, you have R100,000 in contents cover but the real value of your goods is R200,000, your insurer is likely to only pay out R50,000, because you are 50% underinsured.

Conversely, over-insuring should also be avoided as it does not make sense to insure goods for more than they are worth.

Just like you should not be selective and only insure a few items, you should not over-pay.

This is why having an accurate replacement value, which is reviewed at least annually, pays off and will ensure your premium is covering what you need it to.

I will not forget to communicate changes

Failing to update your policy when something changes, or you buy something new, is an error easily avoided.

During your annual review, updates will usually be addressed, but if you forget to mention something or do not put through updates accurately, your cover could be jeopardised.

Any changes between reviews should be communicated as well.

Your policy can be amended at any time to accommodate updates. Be sure to note written proof that the changes are carried out as well.

I will not lie to my insurer or try to ‘recover’ my premiums

In today’s economic climate, you can’t necessarily afford to counter a big financial loss, but insurance premiums are still heavy on the pocket.

While premiums are pricey, they are considerably less than what you might need to pay after suffering a loss.

Your premium buys peace of mind and protection for your goods.

If you do not need to claim, it might seem frustrating that you are paying your premiums each month and seemingly not getting anything out of it.

Do not be ignorant about mismanaging your policy though, thinking you paid a certain amount in premiums and should now claim excessively to “recover” that money.

If you are seen to be a multiple claimant and therefore perceived to be significantly unprofitable, your policy could be cancelled by your insurer.

If you are found to be lying about a claim or stop paying your premiums, your policy will be terminated. That is a position best to be avoided. These are key resolutions to follow and can be easy to stick to when working with an adviser, keeping your cover consistent this year and always.