Business Insurance

The first step to avoiding underinsurance is to consider all of your areas of risk. For most people, this would mean having home and contents insurance to protect your property and possessions and motor insurance if you own a vehicle. However, there’s additional coverage available, such as life insurance, which can protect you in the long term, and there are more complex considerations if you own a business. Take the time to think about your unique risks so you can get the right insurance coverage.

One of the biggest reasons why people are underinsured is that they underestimate the value of their home and contents. Don’t rely on guesswork – accurately estimate replacement costs for your possessions so your insured amount is as close to the mark as possible. There are plenty of online calculators which can help you with your estimates.

Remember that costs can change over time so review your insured amounts at least annually to see if you need to increase your cover. For example, the value of your home may increase or replacement costs for your possessions may also go up. Also, let your insurer know if there are changes in your circumstances which require additional cover.

When we’re all trying to budget, it can be tempting to settle for the cheapest possible insurance premiums you can find. However, cheaper doesn’t mean better and many people find that they don’t have the level of cover they need at claim time due to numerous exclusions. While it’s important to source insurance cover which fits your budget, you also need to ensure that you have quality cover which protects your risk exposures.