The new year already seems to be picking up speed, making it the perfect time to take a step back and thoroughly review your existing insurance policies. As your life and needs evolve, so should your insurance policy. It is vital that your insurance keeps up with any changes in your personal, professional, and financial life. Whether you’ve gone through big life changes, or things have moved with a more subtle shift, it needs to reflect in your cover. This will not only safeguard your assets, but give you peace of mind, knowing you are covered in case of an emergency.
Keen to find out more about how evaluate and optimise your insurance cover, to make sure that you enter 2025 covered in all the right ways? Follow the list below to help you realign your insurance – no matter if you are a homeowner, business owner, or just casually revising your personal insurance needs.
1. Review and Update Existing Policies
Without looking at what you currently have, you won’t know what aspects of your portfolio need attention. Ideally, your cover should adapt to your changing circumstances.
Assess Cover Adequacy:
To evaluate whether or not your current policies still meet your needs, see what your answers to the following questions are:
- Has your home undergone any significant renovations or upgrades?
- Did you buy a new vehicle or have your driving habits changed at all?
- Has your business expanded or has it been affected by risks such as cybersecurity threats?
Your home insurance should reflect any improvements or changes made during the past year. Large or significant changes, like adding a pool or redoing the roof, should be pertinently included in your policy to avoid being underinsured. Your vehicle insurance should also be updated to reflect any changes in your vehicle use, or if you’ve bought a new car.
Business insurance is important, as businesses constantly face new risks year by year. Updates to how the operations are run, new people joining the team, or any form of expansion to the business will alter the factors upon which your business insurance is based. It is worthwhile to check your policy for inclusions like cyber insurance, to cover you in this volatile area.
- Identify Policy Gaps:
Review your policies to identify if there are any gaps in your cover. Consider whether you need additional protection, such as:
- Flood insurance, especially if you live in an area prone to flooding, like low-lying areas, or in an area near a river.
- Personal liability umbrella insurance will protect your personal assets in the event of any major lawsuits against you.
- Action Steps:
Your insurance broker is best equipped to chat you through the ins and outs of your current policies, and to help you make adjustments where necessary. A professional review is the safest and easiest way to ensure that your cover matches your life.
2. Update Valuations and Reassess Risks
Accurate valuations are critical for ensuring you have the correct level of cover.
- Property Valuations:
Your property insurance should accurately reflect the current market value of your property. This will help you to not end up underinsured. Because property values fluctuate over time, it’s important that your cover remains current and aligned with these changes.
- Personal Belongings:
Create a home inventory list (or update it regularly if you already have one) to keep track of any new purchases or any belongings that you want to get rid of. An updated inventory of your furniture, electronics, and collectibles ensures that your possessions are adequately covered in case of loss or damage.
- Business Assets:
Regularly reassessing your business’s equipment, inventory, and other assets is essential to ensure that their value is adequately represented in your policy. Your business property insurance should cover any newly purchased equipment or assets, while your liability insurance is there to cover any additional risks that may arise as your business evolves.
- Action Steps:
When you meet with your broker, ask about the potential impacts of inflation and market fluctuations on your valuations, and where these fluctuations may leave you in the event of a claim. Your broker can help you to engage professional appraisers if the need arises, and in turn, update your insurance provider with the new values.
3. Check for Policy Lapses and Renewal Dates
Lapses in cover can leave you deep in the red if anything happens! Keep an eye on your policy renewal dates to prevent your cover from lapsing. Here are a few points to consider.
- Monitor Renewal Dates:
Set a reminder for when your policies are up for renewal. You could be left vulnerable if you miss a renewal, so make sure that you remain on top of dates.
- Automatic Payments:
Automatic payments are a great way of taking the stress out of paying your premiums. This allows you to maintain seamless cover, without the worry of potentially defaulting on a payment.
- Policy Consolidation:
If you have multiple policies with different providers, consider having them bundled under one insurance company. This makes it much easier to manage your cover, and you may even be eligible for certain discounts.
- Action Steps:
Set a calendar reminder for each policy’s renewal date and automate your payments so that your cover is not disrupted at any point.
4. Have a conversation with the experts
Partnering with a company like Indwe Risk Services ensures that you’re always supported by trained, informed professionals, and that you don’t have to navigate the complexities of insurance on your own. We offer:
- Comprehensive Policy Reviews: Our experts will analyse your cover, identify any shortcomings, and provide recommendations based on your unique needs.
- Personalised Consultations: We look at your ever-evolving circumstances, and help you to customise your cover accordingly to protect your assets.
- Action Steps:
Whether you are a current or prospective Indwe client, we recommend scheduling a consultation with one of our brokers, to help you gain comprehensive insight into your insurance needs. Based on our findings during this consultation, we can help you navigate the best solutions for your protection.
5. Additional Considerations
While reviewing your insurance, don’t neglect these points:
- Emergency Preparedness:
You should always have an updated emergency plan in place. Experts recommend keeping copies of your insurance documents in various easily accessible locations. If you are able to share your insurance cover with a family member, this can also make the claims process much easier in an emergency.
- Legal Changes:
When tax laws change, or other legal implications affect your cover, you need to stay on top of what is happening. Consult a specialist to assist you if you are uncertain, but remember – knowledge is power, and being proactive about changes in legal requirements will help you avoid any unpleasant surprises.
The year is still young, so make preparing and updating your insurance policies a priority. Knowing what is going on with your policies puts you in the driver’s seat, ensuring that you are prepared in the case of any unplanned or unexpected event, while safeguarding your assets and investments.
Schedule a policy review with your Indwe broker today. If you’re not yet a client, don’t worry – just contact us for a consultation. We’ll make sure that your insurance cover is comprehensive and customised according to your needs and your life, starting with 2025.
For more information, visit www.indwe.co.za, or contact us directly to speak to one of our expert brokers.
Indwe Risk Services is an authorised Financial Services Provider FSP 3425