So your car, home and contents are insured and have been for years. But have you been lulled into a false sense of security by the mere fact that you pay your premium every year? When did you last check that your insurance coverage still meets your needs and provides adequate protection for your home and property?

RAA Claims Manager, Hayley Cain says insurers face a major challenge in motivating customers to take ownership for the relevance and management of their vehicle, home and content insurance.

“We regularly send information on policy updates or changes to our members and our consultants are always happy to offer assistance and advice.

“But the customer needs to ensure they read policy updates and are aware of inclusions or exclusions in their policy. They also need to make sure the value insured is up to date and that they take the appropriate measures around maintenance, security and proof of purchase.

“Learning that your property isn’t insured away from the home or that a young driver has a higher excess in the event of a car insurance claim is upsetting but it doesn’t take long to make sure your insurance stays fully relevant to you and your families changing circumstances,” says Hayley.

Here are RAA’s tips to help ensure your insurance coverage is relevant and you won’t face any unwelcome surprises in the event of a claim.

Understand what is covered by your policy

• Read the fine print on your home and contents insurance, paying special attention to:
  • Whether you have total replacement or sum insured cover as this will impact the amount you receive if you make a claim
  • What is insured/excluded for home
  • What is insured/excluded for contents
  • Exclusions related to insured events e.g. are you covered for flood?
• Supplementary costs are extra expenses that may be incurred if your home needs to be rebuilt e.g. temporary accommodation. Check whether your policy covers these costs as insurers can treat them differently, for example they may be included in the sum insured or paid on top of that
• Check whether you need optional cover for things like accidental damage (this will cover your possessions for loss or damage away from the home), pet or specified high value items. This coverage can usually be purchased for a minimal additional cost
• Home policies do not always cover business activities and assets. If you work from home, you may need a separate business insurance policy

Manage the value of your cover

• Use the estimators or calculators provided by your insurers on a regular basis, to avoid underinsuring
• The cost of rebuilding your home is not the same as the real estate value. A professional valuation by a builder will give the most accurate replacement cost
• Notify your insurer of any major renovations or additions
• Most policies have limits for contents cover on things like collections and jewelry – for example the RAA limit for any bicycle is $5000. If your bike is worth more than this you would need to specify it. High cost items above the limits outlined in your policy will need to be specified and valued
• Keep receipts of household contents for proof of ownership
• Take photographs of your contents especially collections and high value items – store the photos somewhere other than in your home

Be honest with your insurer

• Ensure you properly maintain your home and adhere to your insurers requirements e.g. that you keep roofs and gutters clear or have deadlocks on doors and windows. Failing to meet the requirements of your insurance policy may impact your claim
• Let your insurer know if your home will be unoccupied for an extended time as some policies will provide limitations if a building is vacant for more than 60 days
• With vehicle policies notify your insurer if you modify your car (e.g. rims, tinted winders, woofer and kits), move house, have extra drivers or use your car for work
• If you make a claim – tell the truth. Insurers have access to police reports and expert assessors so they are able to check the facts and determine real values

Your insurer works in partnership with you to protect your most valuable assets and possessions. If you have any questions or concerns, make sure you contact them and get the answers you need to fully understand the extent and responsibilities of your insurance coverage.

Click here for more information, call 8202 4567 or drop into an RAA Shop.