Insurance policies are most likely annual, and before renewal, some companies inform their clients about the upcoming renewal.
As responsible consumers, we should assess our insurance covers, and whether or not we are informed by our company that they are proceeding to renewal, we should be aware that they are close to expiry and check whether our insurance needs are satisfied by renewal with the same conditions, terms and information, or whether our company or insurance intermediary should be informed of amendments we would like on our policies.
- Some classic examples –
- MOTOR INSURANCE
- A vehicle is usually insured (for comprehensive insurance) for a Sum Insured reflecting its market value. This value is not the same each year, therefore you might need a reevaluation of your Sum Insured.
- Drivers – authorised drivers are named on your Policy. Should you wish to add or remove anyone, the company/ intermediary should be informed before renewal.
- Look at the extensions available – Wet perils (cover for hailstorm and other weather-related events) should be included in your Comprehensive Policy, as we adjust to the effects of Climate Change. So does Windscreen cover, therefore you should make sure you have this cover, as windscreen breakages are extremely common events for various reasons.
- HOME INSURANCE
- UNDERINSURANCE!- This cannot be stressed enough. The Sum Insured declared for your Home, is the Sum that reflects the amount needed to rebuild your home in the event is it is destroyed and needs to be rebuilt (this is the Reinstatement Value). You will most likely never need to claim the actual cost of rebuilding, but for any claim you may file, proportionality applies and the reimbursement shall apply in proportion. Do not risk lower compensation because of lower declaration of your property value.
- ALTERATIONS – additions/ renovations may have been made on your property and, at renewal, should be declared. New quotations may even be needed!
- CONTENTS – Re-evaluate the Sum Insured for your Contents.
- PROPERTY IN THE OPEN – Any property outside is obviously more prone to damage in case of weather-related phenomena – Storm/ Flood/ Hurricane/ Cyclone/ Hail/ Tempest etc. You should receive appropriate advice and then declare the value of any property you would like covered in the event of weather-related loss or damage.
- BURST PIPES/ BLOCKED PIPES/ FLOOD? Check your Policy and what it covers in relation to pipes, tanks and other similar apparatus. Burst pipes is a common peril and some policies provide options for investigation costs, escape of water covers and other related losses, in addition to the actual damage that is caused by the peril.
- BUSINESS INSURANCE – Your Business Insurance may be a Comprehensive Insurance (such as our very own Combined Business Insurance #enhanced – therefore, before your renewal, there might be a need for you to check for various issues. Examples are:
- UNDERINSURANCE re your buildings cover
- REASSESSMENT for CONTENTS – Re-evaluate the Sum Insured declared for Contents, you may have acquired new equipment or furniture, therefore make sure the amount Insured reflects the real value.
- PROPERTY IN THE OPEN – If your Business operates in a manner requiring having any type of property located outside, check with your Insurers – as to whether is it is covered under weather-related events and/or how it can be covered, and to what extent.
- BURGLARY – An office or any type of work, is always prone to dangers from burglary, as well as damages incurred in a burglary attempt. Make sure your business premises are covered, in the event your work becomes a victim of an attempt.
- CONSEQUENTIAL LOSS/ BUSINESS INTERRUPTION- If your business has to stop for a while, after a peril, policies may cover your lost income, during the period the business ceases for repairs. Check your covers, and check, most importantly, the amounts you can claim for damages, should your business comes across an unfortunate event. You would need to prove your Insurers any financial losses that would be incurred during repairs/reinstatement.
- EMPLOYERS LIABILITY INSURANCE
- Compulsory Insurance. A need to declare total amount of wages, therefore, at each renewal the Insured should ensure wages declared, provide Social Insurance form evidence and inform the Insurers of new employees hired or employees having left. It is extremely significant that an Insurer is aware of who they are protecting under a Compulsory Type of Insurance.
- PROFESSIONAL INDEMNITY INSURANCE
- Turnover – Any expected significant change should be notified to the Insurers before renewal, as for this type of Insurance, income is directly related to premium.
- Employees – The Insurers should become notified of the Insured Persons under all kinds of PI insurance, as a claimant might include the Insured and/or an employee in any claim.
- Limits of Liability- The Insureds should ensure, at every renewal, that their limits reflect their business activity. For example – if a lawyer handles cases in the range of 2mil, they should be insured accordingly – if a property assessor is required to carry out property assessments on behalf of a banking institution, it is often compulsory for them to have insurance policies with very high limits (3m-7m).
* NOTE- above are just examples, as there are multitudes of insurance needs to be amended for any policy, any kind of insurance, any specific insurance need, any Insured’s profile! Renewing your Insurance Policies on same terms and conditions may be easy, but might present as a wrong decision during the next Insurance Period. It is important to examine policy schedules or wording before every renewal, and accordingly advise your insurance company / consultant for amendments, or even express you worries if anything does not feel right.
