New year, new you? One thing’s for certain, a new year is the perfect time to review your policies and check you still have the right amount of cover. This is especially important if you’ve had any life changes during the last year - like moving house, buying a car, partnering up, or even having a baby. Even if your lifestyle hasn’t changed, prices have gone up, and it will likely cost you more to replace your possessions in the event of something going wrong.
Here’s how to spring clean your insurance and make sure your cover still fits. You might even end up saving money.
Your insurance audit checklist
Here are five tips to keep in mind when reviewing your cover:
Adjust the amount you’re insured for
The main reason for reviewing your policy is to make sure you are still insured for the right amount - what insurers call the “sum insured or limit of indemnity”. This is especially relevant if you recently got married, made some home improvements, or upgraded your vehicles. You might also have purchased new items that haven’t yet been added to your policy, such as a bicycle or jewellery, which would be costly to replace. It’s important to either increase the amount of coverage to avoid being underinsured or to specify expensive items.
Be careful of underinsurance
When it comes to home contents insurance, make sure you’re insured for the right amount - the cost of replacing the goods, not the original purchase price. 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 N$6 000. But to replace the couch would cost N$20 000 today. The risk is that you would not be able to afford to replace the couch with a similar item and would have to get an inferior one in the event of a claim.
That’s why you’ll find your insurance policy renewal automatically adjusts the sum insured each year so you keep pace with inflation. Your premiums go up every year to reflect this change.
Assess your home structure
Completed a home renovation project? If you made additions to your buildings that might increase the value of your home for instance by replacing a roof, redoing the kitchen or installing a swimming pool, you should also increase your insurance cover. You need to insure both the house, or building structure, and the belongings inside (home contents) at their replacement value. This is what it would cost you to replace or rebuild your home and its contents with similar, new structures or items.
It’s estimated that one in three homes in Namibia is under-insured. Having the right cover in place will protect you in the event of fire or other damage.
Check your vehicle cover
Cars should always be insured at “reasonable market value”. This is the retail value a dealer would sell it for, considering its age, mileage, condition, and any extras. Not sure what your car is worth? Contact Santam directly and we’ll help you work out the reasonable market value. Here’s what goes into your car insurance premium.
Don’t forget to check your business insurance too
Are you your own boss? Then you should also consider what risks your business faces and whether the coverage you have is still fit for purpose. You can get a business insurance quote from Santam.
Get peace of mind with Santam
Santam offers you reliability and strong claims support when you need it most. We partner with you to protect what you’ve worked for. Even if it’s not yet time for the annual renewal of your short-term insurance, it’s important to take a few minutes to go through your policies and understand how much you’re covered for. If you have a broker, talk through your policies with them and see what you can adjust. You could even end up saving some money in the long run. Contact Santam today.