As spring approaches, we often feel the urge to start fresh by spring cleaning many parts of our lives but what about spring cleaning your insurance policy? Yup, you heard that right, let us explain…
Sunny days, warm weather and hours spent next to the pool are in our near future as the beauty of spring approaches. Spring brings on a sense of a fresh start and the promise of something new which is why we often feel the urge to spring clean our house or clean out our clothes cupboards but have you ever thought about spring cleaning your insurance?
Life is filled with changes which means the policy you had in place a year ago may not be the perfect policy for you right now. From your home insurance to your car insurance, you need to make sure that your policies are up to date so you never suffer any type of shortfall.
Spring cleaning your insurance
These are our top tips for spring cleaning your insurance:
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Adjust the amount you’re insured for
The main reason for reviewing your policy is to make sure that you are insured for the right amount. You don’t want to be paying for something you don’t need or risk being underinsured. Over the course of the past year, you may have bought a brand new phone or upgraded your TV and a couple of other items, all of which means you will need to adjust the contents of your insurance cover.
The best part about having an insurance policy with Oneplan is the second you need to change anything, you can easily do it on the Oneplan App. The Oneplan App is an easy and convenient way of managing your policies all from the palm of your hand.
Discover: Renovating vs Moving: What Should You Do?
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Avoid underinsurance
Underinsurance means that your items are not insured at an adequate amount. In the event of a claim, underinsurance may result in you losing money or not being paid out what your items are worth.
With the exception of motor insurance, the value of the goods insured should equal what it would cost to replace them today, not the original price you paid. Very often we find that goods remain insured for their original value – for example, a leather couch bought 10 years ago would be insured for R6 000. But to replace the couch today would probably cost R20 000, so you could be left very disappointed when you leave the shop with an inferior and smaller couch than the one it replaced.
For this reason, insurance companies usually automatically adjust your sum insured each year so that the covered amount keeps pace with inflation, and this should be made clear in your policy document (make sure to double-check your policy!).
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The structure of your home
If you own your house and you have enhanced the value of your home by replacing your roof, redoing your kitchen or improving your home by installing a swimming pool, you need to increase the amount your house is insured for too.
Your house (its structure) and your belongings (the contents of your home) must be insured at their replacement value – that is, what it will cost you, at the time of a claim, to replace/rebuild the building (your home) or belongings with similar, new structures or items.
Read next: How to Save Money Around the House: 12 Ridiculously Easy Ways
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Check out your car’s cover
Your car should be insured at “reasonable market value.” Reasonable market value is the retail value, which is what a dealer would sell it for, considering its age, the mileage, the condition of the car and any extras.
If you’re wondering what your car is worth, you should contact us to work out the reasonable market value of your car with a car calculator.
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Update your personal details
Have you moved house, got married (or divorced) or changed jobs, and forgotten to update your insurance details? Although some changes may seem minor, they could have a major impact on your claims or premiums. Check that the addresses where your car is parked, both during the day and at night, are correct, and that your insurer knows how much mileage you do in an average month.
It is important to ensure that you update us about any major changes for many reasons to avoid any disappointments when an incident that requires you to submit a claim occurs. Help us help you by ensuring that you are adequately insured for your household contents and vehicle!
Our lives are always changing, the same can be said for your insurance cover which is why your insurance policy shouldn’t just roll over every year. Make sure you go into this new season fresh by spring cleaning your insurance!
Yours in comprehensive insurance,
Oneplan
