Do You Check Your Sum Insured?

In my previous life I was an Insurance Consultant and as such, I know how people feel about the topic. As a past Insurance Consultant, I also have a raise awareness of how I feel about the topic, which is a post for another time.

While I left that life behind me in 2007 when I had Ellie, I think about writing this post yearly as our renewals flood our mailbox (or not, in the case of the not so great auto renewal offered by some companies) and every year I choose not to because, honestly, is there anything more boring than talk of handing over money to a large company just in case?

This year, I have decided to bore you – just a tad, as this is actually such an important topic.

In my time as a consultant I witnessed a whole lot of dissatisfaction, many confused customers and all too many people who were under insured when it came time to make a claim. Every year, when the renewal goes out, so any people assume that the rise in premium in part also covers a rise in sum insured. This is not so and even if some companies do raise your sum insured by a certain percentage it is almost always never enough.

What I have explained, time and again, is that the rise in price is based on changing rating factors and it’s important to think about the rise in living costs in relation to how much you have insured your house or car for.

More importantly, though, is to think about the things which you have acquired over the previous year. The things you add to your possessions over a twelve month period can certainly slip your mind and in this age of technology things are often pretty expensive.

I know it can be a pain in the bum, I find myself dreading it but all I have to do is remember watching the crest fallen faces of those dealing with claims and I find the energy for one more thing on my list of things to do!

Okay, boring post over. Do you check your sum insured?


  1. Hmmm – can’t say I really do Becky. I do get frustrated with the rates increases every year – but never think about more than replacing the house. Perhaps I should be checking this out a little more!!

    • I was the same Caz and this is exactly why I decided to bore you all. I would get my renewal and pay it and be done but, really, I possibly wasn’t covered for my contents anyhow.

      It’s a pain that we have to get it ‘in case’ and it sucks to have to fork out more money and yet if we don’t check we could so easily end up losing so much.

      You should even check the building sum insured every year, just to be sure. Anyway, I hope my weird little post is a bit helpful!

  2. This is such an important topic. Imagine your house burning down but not being insured for enough to rebuild it!

    • Thanks for your comment, Elise. This is exactly why I wrote it. The times I saw people realise they wouldn’t be able to rebuild were too many and completely crushing.

  3. funny cause we just got our renewal for our insurance and its almost $200 more then last year. i wont be paying it as we have sold the house but im worried for that one month that we dont have the insurance that something will happen. ill have to call them and see what we can do about it as we are not sure whether we are buying or renting yet. we have had to use it once in the past and it has been a life saver.


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