What should you do when your insurance policy is due for renewal?… just pay the policy premium and think nothing more about it for another 365 days.
Well….we’d like you to think again.
In our busy lives it can be very tempting to just ‘go with the flow’ when it comes to your insurance renewal – at the end of the day you’ve paid your premium and ‘you’re covered’.
But what happens if your situation has changed since your last renewal? Maybe you’ve done some renovations to your home or rental property, have an additional driver of your motor vehicle or made changes to your business activities…..this is where Insurance Policy Maintenance is important. We know it’s hard to find the time to consider properly whether your insurance policy reflects your current needs. We also know it’s one of the most important discussions you will have each year.
It is critical to keep your insurance broker or insurer updated with any changes to your insurance, regardless of the policy type. If you haven’t discussed relevant changes with your insurance broker your policy may be ineffective, no longer suitable for your needs and fail to provide the full extent of cover you expected in the event of a claim.
What steps can you take to maximise your insurance coverage?
Review what’s covered.
We know it’s tempting to choose the cheapest policy, however that doesn’t guarantee the best cover, especially in the event of a claim. The quality and coverage of the policy, as well as its relevance to your specific needs are what is most important.
It’s our job to help you find the best policy to suit your needs. You have no obligation to stay with the same insurer and we always source the best quotes and coverage from a wide variety of insurers while taking into account your situation and needs. keeping us informed of changes to your circumstances allows us to source the most suitable insurance products tailored to your needs. If there have been changes to your ‘insurable interest’ eg your vehicle, home, rental property, business activities, business income etc you also need to know if this is still within your current insurer’s guidelines.
Review your current Product Disclosure Statement (PDS).
Discuss this with your insurance broker. This way, you’ll be informed of what’s insured and where you might need to extend your cover.
Insurance brokers are experts in this area, and can help you navigate often complex policy wordings to ensure you have insurance cover that can respond to protect your insurable assets and liabilities each year.
Review your Excesses and Payment Options
A majority of insurance policies are placed with the insurer’s standard excess applied. Did you know that by selecting a higher excess, you can lower your overall premium? Discuss this option with your insurance broker to see how much your premium can be reduced with a change in excess. it’s also wise to review your payment options too. Premium Funding options can assist with maintaining cashflow while still protecting your assets.
Review the Sums Insured on your Insurance Schedule.
When reviewing the Sums Insured on your policy, be mindful and consider whether you have:
- recently renovated or made improvements to your property and not increased the Sum Insured
- had a recent valuation on the property and altered the Sum Insured to reflect current market conditions
- considered if some aspects of your coverage are no longer relevant
- had a change in the tenants of your commercial property in the last year
- had a change in the current tenants’ business activities in the last year, but you haven’t notified your insurer
- checked the Sums Insured of vehicles and noted any modifications or additional accessories with the insurer
- any additional drivers especially those under the age of 25 driving any of your vehicles
- changed any of your business activities , taken on new contracts, started working at different locations or even importing new products for use as part of your operations
- changed your address or contact details
How can you stay on top of Insurance Policy maintenance?
If there are any changes to your insurable risks, don’t wait until renewal time to make the necessary changes. Be proactive and immediately notify your Insurance Broker.
Ensuring your policies are well maintained can help you capture the true value of your insurance. Even the most minor change in your risks can affect your policy premium and the likelihood of being covered in the event of a claim. Always ensure your insurance policies are designed to respond to protect your assets and insurable risks. More information on Insurance reviews and Renewals can be found here http://understandinsurance.com.au/review-and-renew
Find out how we can help you today. Contact us to talk to one of our Qualified and Professional Insurance Brokers.