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?