Smart Money recently ran a tip on checking your home’s security before going away on holiday — but something else just as important is checking your insurance policy.
According to Debbie Barret, general manager of marketing at FNB Insurance Brokers, your burglar bars and locks may be fine, but if your policy isn’t, you might be in for a shock. Is your policy fit for purpose if you’re burgled while you’re away?
First and foremost, ask yourself if you’ve had a material change in security provisions without telling your insurer and adjusting your policy. If you’ve cancelled a contract with a professional security firm because you’ve been trying to save money, have you notified your broker? Has your body corporate decided to save costs by changing access and perimeter security? Again, you’ll need to notify your broker or insurer.
Also, check the amount of cover you have. Without regular adjustment, there might be a mismatch between current replacement values and the insured amount.
“Don’t just go on leave and hope for the best,” says Barret. “Focus on changes in insured and replacement values and pay special attention to areas where you’ve economised. Those economies may be perfectly sensible and may have kept your outgoings under control during a tough business environment, but those cuts could also affect your insurance cover. Everything you’ve saved and more might be lost in the event of a repudiated claim.”
It’s not a nice thought — so if you’ve made some security adjustments recently, it’s wise to let your insurer know now.
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