If you follow these seven rules you’ll avoid costly financial disasters and have a worry-free insurance life…
- First and foremost don’t lie, conceal, misconstrue or misrepresent anything you are asked in the form filling or information providing process when you are taking out insurance. It is a deadly mistake and could result in your claim being rejected or policy voided.
- Don’t underinsure to save money. By intentionally reducing your sums insured to keep the premium low will inevitably backfire when you come to make a claim. It is most likely you will not be fully reimbursed for your loss as the insurance loss adjuster will easily discover this.
- By chasing the cheapest premium you leave yourself open to possible gaps in cover and which may, again, leave you out of pocket or nursing financial losses. Insure wisely.
- Don’t be lazy by not checking or reading your policy documents. You must acquaint yourself with your responsibilities regarding your insurance cover. Most policies come with conditions, clauses, warranties, and excesses. Know them. It also allows you to double-check that you have the correct cover and discover possible mistakes.
- Don’t forget to declare your claims history when asked. A forgotten claim may lead to your insurer withdrawing cover just when you need it most.
- Be careful when buying Online or Direct Insurance that you don’t input the wrong information (eg business trade). This may invalidate your insurance policy and could put you out of business!
- Finally, it is a sin not to ask your insurance provider something that you do not understand in your policy. “I wasn’t aware of…” or “I didn’t know what that meant…” is the mother of all insurance disasters.