Taking out insurance for your car, home, buildings, or business (or all of them) is a major step in the right direction. It brings the kind of peace of mind that you just can’t beat, which can lead to feeling a lot more relaxed. So relaxed that you might forget all about your cover and even forget to tell your insurer if anything changes… But is it so bad to forget a few details along this journey that we call life?
Does it really matter to have the right details on your insurance policy? Yes, yes it does.
The simple truth is that if your insurance policy is populated with the wrong info, then you’re paying for the wrong policy. And apart from the fact that this means that you’re paying the wrong price, it also means that you could run into troubles down the line if you have to claim…
These are the common areas that people forget about when it comes to their insurance, which we’ve explained right here so that it’s firmly imprinted into your memory. This way, if you ever experience these circumstances, you’ll remember to tell your insurer and update your policy and keep everything correct. You’re welcome and yes, we do accept cakes by way of ‘thank-yous’.
When your address changes
Imagine that your home has been broken into and you’re left feeling like your personal space has been invaded, perhaps a little scared that people were able to get into your property, and then a wave of relief because you’ve remembered that you have insurance to pay for the damage and items stolen. So you put in the call only to find out during the claim process that your insurance policy won’t cover any of the costs.
Your claim has been rejected. Why? Because a few months before the break-in, you moved to a different neighbourhood and you forgot to tell your insurance company about this change. This means that you’re claiming for damage on your home and, in their books, your address is different.
It’s awkward… And kind of a big deal breaker.
You see, your residential address has a large influence on your premiums, because factors like the crime stats of your area, play a huge role in determining the type of risk that your insurer needs to take on. Which influences how much you pay. And not just for home insurance either. It also affects other types of cover, like car and buildings insurance.
For example, if you live somewhere with higher rates of car theft, then your address could cause your car insurance premium to increase in order for your insurer to properly cover the risk. Alternatively, if the area where you live has lower rates of home burglaries, then your home contents insurance premium will go down.
New items or circumstances
A lot of time, people forget to tell their insurance companies about any new furniture, appliances, gadgets, and other valuables that should be covered by their home insurance policy. Usually, it’s in the beginning of the year when people come back from their holidays, bringing with them all their lovely holiday treats… Criminals are super aware of this time of year and break-ins tend to be on the increase. If you haven’t updated your home contents policy, then these items might not be covered if you need to claim. Thankfully, some insurers provide a handy online inventory form so that you can make sure any possessions that you’ve accumulated are covered.
Actually, the same goes for your car insurance policy, too, because quite often people treat their cars to additional parts or updates and then neglect to tell their insurance company about these changes. So, if something happens involving their car and they need to claim, then it’s possible that they won’t be covered.
Incorrect details = incorrect cover
Keeping your info updated not only ensures that you’re covered, it can drop your monthly payment rate, too. Added to that, committing yourself to an insurance policy is a 2 way street. Your insurer provides the cover and takes on the risk, while you keep your policy correct and pay your premiums.
At the end of the day, it’s a good idea to review your circumstances every couple of months and let your insurer know if anything changes. It only takes a few minutes over the phone or a quick email and then you’re sorted. And it’s completely worth it.
Don’t have car or home insurance and want the cheapest, best cover around? Click here for a commitment-free quote today. You won’t regret it.