Good time to update your short-term insurance policy

The start of a new calendar year is often a good time to take stock of one’s personal risk and to ensure that adequate short-term insurance exists to allow continued peace of mind.

Edward Gibbens (pictured right), Santam’s Executive Head of Broker Distribution says that consumers should update their policies on a regular basis, at least every year, and use the opportunity to consider all the changes that may have occurred within the year.

“Life moves so fast that clients often forget to inform insurers about changed circumstances and accumulation of new possessions. And they only realise the impact of this when they have to claim. If we do not know about the assets we cannot possibly insure them properly,” he says.

Gibbens says that by approaching short-term insurance from the perspective of risk management, consumers are in a much better position to evaluate the level of risk that would promote their particular lifestyle choices, and to determine the appropriate cover that matches these choices. He advises consumers to consult a broker for any assistance they may require in managing risk.

“Brokers are especially qualified to help individuals to determine their level of risk and to find the most suitable short-term insurance products to cover these risks,” he says.

Gibbens also notes that Santam clients, in addition, can take advantage of a dedicated service that will advise them of home and business, vehicle and personal safety service providers in their area. They will be contacted within 24 hours with details of the relevant service providers, and will benefit from discounted prices – up to 30% off normal prices – negotiated by Santam on their behalf. Clients can speak to their brokers in this regard.

Santam has put together a list of things to help policyholders “rest assured” when reviewing their risk and short-term insurance cover for the year:

1. Check that your policy is paid. Banking details may change and banks may send the payment back. If there is no payment the policy might be cancelled, resulting in no cover.

2. Increase sums insured over time. As you buy more things for your home, or make alterations or renovations, the insured amount could become inadequate. When there is a loss, you may find that you are underinsured and this could result in further financial loss.

3. Make sure your car is insured correctly along with any extra car accessories you have added.

4. Specify jewellery in the ‘Specified All Risk’ section of your policy. Make sure that your personal effects are covered under the general ‘All Risk’ section of the policy. This includes things like glasses, cameras, binoculars etc.

5. If cover is subject to burglar proofing and security gates, it applies to each and every window and door. Remember, this includes the small windows and the doors that are rarely used.

6. If an alarm is applicable on your policy, check that it is in working order and remember to activate it every time you leave the premises. Make sure that the response company does get the signal when the alarm goes off.

7. When applying for a policy, remember to tell the insurance company or broker about anything that might influence the premium or cover. Declare all claims; make sure they know exactly what the vehicle is going to be used for, as well as who the regular driver will be.

8. An insurance policy does not cover all contingencies. Make sure that you know what is and what is not covered.

9. Most importantly, remember that you are entering into a legal contract. Make sure you read and understand the terms and conditions and don’t misrepresent your position.