What happens if you lose or damage things you own: your car, home and belongings? What if you need medical treatment?

The one thing you can expect from life is that unexpected things will happen. You cannot obliterate bewildering life events, but you can better prepare yourself for those unexpected moments with insurance. What you can expect from insurance is certainty that your coverage can help you and/or your family better cope in the event of loss.

Get the most out of insurance

Some things to consider when purchasing insurance:

• Think about what you need insurance for. What do you want protection against most? If you are thinking about income protection insurance, for example, check if your superannuation fund can provide it or already gives you coverage. With health insurance, see if you can tailor a policy that fits your stage in life. When considering purchasing insurance, make sure the insurance product you are purchasing is adequate for your needs.
• Shop around for a good deal. Compare premiums and details of exactly what the policies cover, including deductibles (the amount you agree to pay yourself if you make a claim). For most types of general insurance, you can pay a lower premium if you agree to a larger deductible.
• Insure for the right amount. Most people underestimate the value of what they own. If you are looking for home and contents insurance, make sure you insure for the true replacement value.
• Provide full and accurate information. When purchasing insurance, it is in your own interest to answer all questions correctly and honestly. If you don’t, you may mislead the insurer about the risk they are accepting and they might refuse or reduce any claim you make.
• Understand your policy. Insurance companies need to give you a policy document which sets out what you are insured for. Make sure you understand it so that you are properly protected. Don’t wait until it comes to making a claim to find out you are not covered for what you thought you were.

Some things to consider after you have purchased insurance:

• Keep your policy up to date. Let your agent or broker know if you make any changes that might affect your policy – for example, if you renovate your house or buy expensive household items. If you do not tell them, that might also affect any claim.
• Keep tabs on what’s available. When your insurance comes up for renewal, think about whether your situation has changed. You may want more coverage, or to change your deductible. Or you may be able to get the same protection for a lower price. Shop around and be prepared to change your policy if you find a better deal.

Make sure you’re protected – really!

Check out Money Matters BVI for more information on insurance.