Insurance – as some would say, it’s a necessary evil. It’s that thing you pay in the hope of never needing to use it.
But what happens when catastrophe strikes, and suddenly you are searching through your filing cabinet, living in hope that your policy (which you have not properly stopped and studied for a year, or two, or even more) covers you for what you need and any significant changes you have made in the past few years.
My advice to you is simple. Whenever your policy comes up for renewal simply stop. Take a breath. Grab a cuppa, take a few minutes out of your busy day and do one thing. Review your renewal summary and policy. Whatever you do, don’t just pay the bill and continue on.
What has changed since you took this policy out? What has changed in the past 12 months? Do you have more assets? Do you have less? Does your cover truly reflect your current circumstances, and more importantly, does it promise to help you recover your current lifestyle in a big emergency situation.
It doesn’t take much to find an example of insurance policies that haven’t worked for the policy owner. With the anniversary of the massive Christchurch quake fresh in our memories, it shows why insurance is so important and why, even when you think you are covered to the right level, why you should stop and read that fine print.
I am an expert at that fine print. I know it’s not everyone’s cup of tea but it’s the foundation to my work and more importantly, I am here to make sure your insurance is actually what you think it is – after all, you wouldn’t want to find out the hard way that you should have updated or changed your policy when it’s too late.
It may be a necessary evil but if something were to happen, suddenly it’s not so evil and it’s extremely necessary.
Gareth Wallace is an insurance adviser and director of Balance Insurance, offering insurance brokering services in Northland and Auckland.