Short-term Insurance Tips while in Lockdown

Short-term Insurance Tips while in Lockdown

Taking into consideration the current situation we are all facing, we feel it is important that we address your insurance policies, in particular, car and household insurance policies.

 

First and foremost, we urge you not to cancel your policies, as the risk on one side (Vehicles) is reduced, the risk in respect of your building and contents increase due to high usage of appliances and increase in optimistic crime.

 

What can be done to reduce our premium and to consider whilst at home.

 

  1. Many insurers are offering discounted motor premiums for the months of May and June which will be implemented automatically
  2. Certain insurers are also allowing you to use the cash back benefits to fund your premium (Selected clients only)
  3. Temporary freeze in cover – we are not a fan of this at all, due to the risk exposure

 

Please refer to below options that is also available to consider:

 

  • Buildings (Home owners Insurance)

 

This is a tough one, as building cover is subject to average, and must be insured on insurance replacement value (what it would cost to rebuild, including professional fees such as, architects, engineers, Electricians, plumbers and then the disposing of material etc) we would therefore suggest to:

 

  • ensure you are correctly insured and maybe even consider additional cover such as accidental damage, machinery breakdown and power surge

 

To limit claims, we would suggest that you take this time to clean gutters (always taking your own safety into consideration) clearing bushes, trees etc that can cause damage to your property.

 

Should you require contact details of professional valuators, please contact us and we will gladly assist.

 

  • Contents Cover (Householders Insurance)

 

As per building cover, Contents  is subject to average, and must be insured on current replacement value (what it would cost to replace all the items inside your house e.g. should you remove your roof, and you’re your house upside down, everything that falls out) we would therefore suggest to:

 

  • ensure you are correctly insured and maybe even consider additional cover such as accidental damage, machinery breakdown and power surge

 

Please also remember, your insurers will require proof of insurance (Slips, Boxes) as I am aware many of us no longer have this, I would suggest taking pictures of your items including model and serial numbers, pictures to be dated and kept safe, even though insurer do not generally accept pictures, this is better than not presenting anything to them.

 

In regards to jewellery, precious metals, stamp collections, antiques etc – valuation certificates not older than 2 years must be presented.

Please always remember to check your policy wording in regards to security requirements (Safe clause, and security at home)

 

Should you require contact details of professional valuators, please contact us and we will gladly assist.

 

  • Liability cover

 

Not an option to remove

 

  • SASRIA

 

Cover can be removed under certain circumstances, however, not advisable as strike and Riot is NOT covered under your general terms and conditions of cover (exclusion of cover) the current climate is very sensitive and people may react more aggressively in gatherings resulting in damage/theft to your property (big risk at present)

 

 

  • Unspecified/Specified/All-risk cover

 

If you are no longer traveling with items that are specified, you may consider temporary removing these items from this section and Increasing the contents sum insured to avoid average applying,

 

Please remember accidental damage will often be excluded (Depending on the insurer) therefore always ensure your wording is understood in regards to what cover is enjoyed (Most insurers will include theft, power surge, lightning and peril damage)

 

  • Motor Section (including trailer/boats/bikes)

 

We believe this is where we have the most “room” to look at and amend to reduce premiums, following changes in cover to consider (please consult me prior to actioning any changes so that we are aware of the risk and shortfalls)

 

Amend class of use from Business to private if you are no longer using your car for business use

Remove car hire if you have more than one car or if you are not using your vehicle

Remove excess waiver if you not using your car or if you using it very little (accident and theft risk is still a concern, however, not as before due to the lower volume of traffic)

Amend cover type from comprehensive to 3rd party, fire and theft – This is very risky and careful consideration must be given prior to doing so, as you will not enjoy “own damage” besides fire and theft

 

Following must be in considered in respect of point 4

 

  • If car is financed, this is not an option, as per your financial contract stipulates vehicle must remain comprehensively insured at all times
  • As we are entering winter, the risk changes: flood, hail, impact (trees, debris etc) are points of concern
  • Accident damage – despite the volume been lower on the roads, the risk of an accident or own damage remains not to mention the odd freak accident – 3d party goes through your wall and hits your car, part of building collapses damaging your car

 

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