We have all done it. Once your buildings and contents insurance is up and running, it is easy to allow it to renew automatically without a second thought. After all, it is there for peace of mind isn’t it? But the reality is that your buildings and contents insurance needs to be carefully monitored to ensure it is always working best for you and taking into account any new items or any changes to your circumstances.
Check your contents and sum assured are up to date
If you have purchased new furniture or a high value item such as jewellery over the last year, then the amount you are covered for may no longer be enough. It is therefore important to check your
current list of contents every time you renew. The Association of British Insurers (ABI) recommend that policyholders “update the list each year before renewing insurance to keep the sum insured up to date”.
Compared to the initial compiling of the list, ensuring it is up to date shouldn’t take long at all. But it is easy to forget buying an item on occasion and protecting the validity of your insurance is crucial in case it comes to claim.
Read your documents carefully
It might sound like an unnecessary chore but it is very important. Knowing what items are not covered is crucial when it comes to making a claim. Have your circumstances changed? Do you now need accidental damage or home emergency cover? Would you now prefer to pay annually to save money on premiums?
It is also worth noting the premiums, for when policies automatically renew the premiums can increase. This is especially worth checking as insurance premium tax has recently increased, so check your payment plan for the next year is working for you.
Everyone knows that insurers need to be competitive. So shopping around to find a better deal and coming back to your insurer could save you lots of money over the next 12 months. Insurers love giving you the best price to beat their competitors. Also, don’t forget the excess. If you opt for a higher excess it will reduce your premiums, but make sure you are prepared to pay this if you need to make a claim.
Don’t become one of the 20% and contact a financial adviser
The ABI has recently revealed that at least one out of every five home insurance claims are rejected. Don’t become one of the 20% and check your policy is up to date and fully reflects your situation.
If you are unsure as to whether you are correctly covered, talking to a financial adviser can really help. Using your financial adviser is hassle free. Our financial adviser will search for the right level of cover for you, with the security of knowing that you will be covered by insurance with a five star defaqto rating!
If you would like to discuss this, or any anything else, contact our advisers today on 01202 937444 or visit our other websites to speak to a mortgage broker in Reading or a mortgage broker in Bournemouth