Most of us are good at renewing our insurance. The email arrives, the premium is paid and another year of cover begins.

 

But there is an important question worth asking:

When was the last time you actually checked what your policy covers?

 

General insurance is designed to protect many of the things we have worked hard to build — our home, contents, vehicles, valuables, investment properties and businesses. Yet insurance policies can vary enormously, and assuming you are covered can be very different from knowing you are covered.

 

That is where regular reviews and professional general insurance advice can become extremely important.

 

Accidental damage — are those everyday mishaps covered?

Imagine accidentally knocking over an expensive television, dropping your laptop, damaging a benchtop or spilling something across a valuable piece of furniture.

Would your home and contents policy respond?

Some policies may include accidental damage, others may offer it as an optional extra, while others may have different limits and exclusions.

It is easy to assume that because you have contents insurance, accidental damage is automatically included. That may not necessarily be the case.

Understanding exactly what is covered before something happens can help prevent an unpleasant surprise at claim time.

 

What about fusion cover?

Fusion cover is another area that can sometimes be overlooked.

Electrical motors are found throughout the modern home — in refrigerators, freezers, air conditioners, pool pumps, washing machines and other appliances.

Damage caused by an electrical current or motor burnout may require specific cover depending on your policy.

Replacing a compressor, motor or major appliance can be expensive, so it is worth asking your general insurance adviser whether your current policy includes appropriate fusion or motor burnout protection and what limits may apply.

 

Have you specified your valuable personal property?

Then there are the possessions that may require special attention.

Jewellery, watches, artwork, cameras, bicycles, sporting equipment, musical instruments and other valuable items may be subject to individual or category limits under a standard contents policy.

Some items may need to be specifically listed or insured as specified personal property, particularly if you want broader protection or cover when taking them away from home.

Think about how your circumstances may have changed since your policy was established.

Have you bought a new engagement ring? Upgraded your camera equipment? Purchased an expensive bicycle? Inherited jewellery or artwork?

If your insurer does not know about these items, your existing cover may not necessarily provide the level of protection you expect.

 

Your life changes — your insurance should be reviewed too

Insurance is not something that should simply be renewed year after year without consideration.

You may have renovated your home, installed a new kitchen, built a shed, purchased expensive furniture, added solar panels or increased the value of your possessions.

Construction costs and replacement costs can also change over time.

The amount of insurance that appeared appropriate several years ago may no longer reflect what it could cost to rebuild your home or replace your belongings today.

 

The cheapest premium may not provide the best outcome

Price is naturally important, particularly as household expenses continue to rise.

However, comparing insurance solely on premium can overlook one of the most important considerations — what you are actually getting for your money.

Different policies can have different excesses, limits, exclusions, definitions and optional benefits.

Saving money on a premium may provide little comfort if an important event occurs and you discover that the protection you expected was never included.

 

Advice can make the difference

General insurance can be complicated, and every household, property and business is different.

A general insurance adviser can help you review your circumstances, understand available policy options and identify areas that may require further consideration.

Accidental damage, fusion cover and specified personal property are just three examples. There may be many other features worth discussing depending on your circumstances.

So, when was the last time you really checked your insurance?

Rather than waiting until claim time to find out, consider speaking with your general insurance broker or adviser and reviewing your protection now.

Because when it comes to insurance, knowing what you are covered for can be every bit as important as having a policy in the first place.

This article contains general information only and does not take into account your individual circumstances. Consider speaking with a suitably qualified general insurance adviser about your insurance needs.

 

If this article has inspired you to think about your unique situation and, more importantly, what you and your family are going through right now, please get in touch with your advice professional.

This information does not consider any person’s objectives, financial situation, or needs. Before making a decision, you should consider whether it is appropriate in light of your particular objectives, financial situation, or needs.

(Feedsy Exclusive)