Avoid being under insured

The realisation that you’re under insured for your home contents usually happens too late. Often, it’s during the claims stage when you need to replace an item (or many items) and the insurance pay out isn’t quite as much as you thought it would be. It’s easy to get angry, but the truth is that this is within your control. After all, insurers only know what you tell them.

What does being under insured actually mean?

“Think of it this way,” says Natasha Kawulesar, OUTsurance’s Head of Client Relations, “If you had to replace absolutely every single possession inside your home, today, what would it cost in total? That includes the TV, the 50 to 100 books you have in your bookshelf, the pans in your kitchen and even that old, embroidered tablecloth from your grandmother that you keep in your cupboard. If your home content is currently insured for an amount below that figure, you’re under insured.”

Fortunately, there are ways to stay on top of it all. For starters, fill out a comprehensive inventory list when taking out home contents insurance, noting the make and model (and even the serial number) of electronic devices or other items where applicable. It’s also a good idea to take photos as reference, including different angles in each room of your house.

Your inventory needs to include absolutely every item that ‘lives’ in your home, without exception. But, what about all those items that leave the home regularly, such as jewellery, watches, cameras, etc.? Because these items are exposed to different risks, you would probably need additional cover for when they are taken out of the house.

The most important thing of all, according to Kawulesar, is to stay up to date. “If you buy a new, expensive item, simply tell your insurer. Most insurers will increase your sum insured each year, to keep up with the increase in replacement values due to inflation, but they can’t know that you’ve bought something new if you don’t tell them.”

If you’ve decided that it’s a good time to review if you’re adequately insured, why not take the opportunity to see if you could get a better deal? To start an obligation-free quote with OUTsurance, simply click here or call 08 600 60 000. Remember, they also offer insurance for your car, business, life and pets too. You can even request the services of one of their dedicated OUTsurance Brokers who will become your single point of contact.

OUTsurance and OUTsurance Life are licensed insurers and FSPs. Ts, Cs and limits apply.