It's essential to remember that when your life changes, your insurance may have to change too.
This is according to Susan Hunt, Chief Actuary, Nedbank Insurance.
Car and household insurance offers people peace of mind because it allows them to go about their daily lives with the knowledge that their prized possessions are protected.
Hunt said that having an insurance policy also comes with an obligation to take proper care of possessions, to act responsibly, and keep the insurer informed of any changes in lifestyles or circumstances that could impact insurance cover.
It is vital that people stay in touch with their insurer and keep them updated on anything that could change their risk profile.
Hunt said that keeping your insurer informed is not just good advice, it is a critical responsibility that, if not fulfilled, could prove very costly when the time comes to claim.
There’s a vast range of changes that could affect all your insurance policies including:
– alterations to your property
– moving home
– buying new household items
– changing jobs
– shift in your personal circumstances like marriage, childbirth, or an inheritance.
According to Hunt, if you don't notify your insurer, you may find yourself under-insured or not even covered at all.
“Imagine the financial implications of discovering too late that your new home extension, in which you have invested so much, is not covered – simply because you did not notify your insurer and ask them to update your insurance policy,” Hunt said.
However, losing out on some money when you claim could not be the only consequence for not updating your insurance policy.
According to Hunt, failing to update your insurer can lead to even more severe consequences, like a potential breach of your insurance agreement, which could see a future claim rejected entirely.
It important that you understand the terms and conditions of your insurance policy, and know that it is your duty to let the insurer know of any significant life changes.
Take caution and call your insurer whenever a change happens and make sure that your belongings are always protected and fully covered.
Hunt said that people need to remember that notifying their insurer of changes does not automatically mean their premiums will go up - some of the changes you make could reduce the cost of your insurance.
“For example, if you upgrade your home security, or move to a safer neighbourhood, telling your insurer could improve your risk profile and reduce your premiums,” Hunt said.
“Even if that’s not the case, the simple fact is that your insurer can only offer you the most suitable cover for your needs if they are always fully informed about your personal circumstances.”
IOL Business