Buying insurance is about reducing the financial burden in the event of unexpected loss or damage.

For example, homeowners’ building insurance will assume the risk of loss in case your home is damaged or destroyed, where household insurance will only cover your home contents. Policy holders often assume that the insurance product they have purchased covers them in any event and for everything that relates to the item they insured. However, that is not always the case as there are some common, little-known gaps many of us have in our insurance cover. Here are a few examples of insurance products where the gaps are often overlooked:

Building Insurance

Building insurance can be tricky. It is important to speak to an insurance advisor and familiarise yourself with what exactly is covered by your policy, and more importantly, what is not.

You might think your insurer would pay the full cost to replace the structure of your home if it were destroyed by a fire, for example. But many policies place a cap on replacement cost up to the face amount stated on the policy. It is important to review the replacement value every so often to be sure you have adequate insurance. Even if your policy states that “all perils” are covered, most policies carve out many exceptions or exclusions to this general provision. For example, your policy may limit how much and for how long it will pay for temporary housing while repairs are made. If you have renovated, it’s always a good idea to touch base with your insurance advisor to check if updates to your policy are needed.

Another often-overlooked condition of building insurance is the residency. Did you know that if you move out of your house while you continue to own it, and then a fire starts or a vandal wreaks havoc, your insurance probably won’t kick in? As soon as you plan to move out, call your insurance advisor to switch to the right policy.

Motor insurance

Which drivers and what vehicles are covered by your motor insurance? Most policies provide motor insurance for you and family members residing with you. But what about a child living in a university residence or in an off-campus apartment? If you and your spouse divorce, which motor policy insures your children who are living with each parent at different times during the year? It is essential to discuss these living arrangements with your insurance advisor to avoid any gaps in your motor insurance policy due to these changes.

Other gaps could include limited to no cover for damaged batteries, tires, and shocks. Your policy may also limit the amount paid for a rental while your vehicle is being repaired.

Household insurance and High-Value Items

A standard household insurance policy has limits to amounts you can claim. For people who own expensive and valuable items, their household insurance may not provide enough cover to repair or replace items such as jewellery, artwork, antiques and collectibles. Speak to your insurance advisor to ensure these items are covered by your policy.

To avoid these and other possible gaps in your insurance policy, review your policy annually with your advisor. Policy terms and conditions are often overlooked, and you may not understand what’s covered until it’s time to file a claim. A face-to-face meeting is always best with the policy right there in front of both of you. Also, take heed of notices you may receive. 

While it looks like insurance jargon, it could actually be changing your insurance coverage significantly. Don’t rely on your own interpretations – seek an explanation from your advisor to be sure you’ve filled all the gaps.

Phone Indwe today on 0860 13 13 14 to make sure that all the gaps are filled