Here is your home insurance checklist

The beginning of a new year is usually a perfect opportunity to revisit your budget and reassess expenses.

Ernest North, co-founder of Naked Insurance, says neglecting to update your insurance can leave one underinsured, with outdated coverage that does not account for changes in the house or possessions.

He gives an eight-point checklist to help individuals review coverage, avoid surprises and stay protected.  

1. Check your insurance cover against contents value

North says it is easy to lose track of the value of the stuff in the house as you keep buying more.

Some people usually underestimate the value of things like clothes in the wardrobe and the small appliances in the kitchen.

“The result is that you might not have enough cover for everything you own. In fact, many people only buy cover for around 55% of their home contents’ replacement value.

“This leaves you exposed if you experience the loss of most of your stuff in a fire or a robbery. But it can also leave you out of pocket when you make a smaller claim.

“Insurers apply an average concept when you claim against home contents. If your TV worth R10 000 is stolen, your insurer will cover only R5 000 minus your excess. If your excess is R2 000, you’ll only get R3,000 back.”

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2. Insuring for replacement value

He adds that it is important to ensure your insurance covers stuff for replacement costs, not purchase costs.

Due to inflation and the rand, an appliance you bought for R15 000 a few years ago could cost R20 000 today.

Or you might find that the appliance you insured for R22 000 three years ago can now be replaced for R16 000.

“Review your policy regularly to ensure you’re not overpaying on your monthly premium and to account for inflation or new purchases.

“This will ensure adequate protection and won’t face unpleasant surprises when claiming.”

3. Strengthen home security

“Your insurance cover might be conditional on you installing security measures like a linked alarm or putting burglar bars on all opening doors and windows.”

He says it is important to check the security requirements outlined in the policy. If you are not compliant, your insurer may decline your claims.

“On the flip side, let your insurer know if you add new measures such as electric fencing or CCTV cameras.

“These might reduce your premiums. Remember always to arm your alarm and lock your doors when leaving.

“If you don’t and you are robbed, your insurer could have grounds to refuse your claim. Read the policy wording to check.”

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4. Secure high-value items

North adds that not properly securing high-value items like jewellery, artwork, or electronics can lead to higher premiums.

“Insurers may require additional coverage or raise rates if valuable items are not stored safely. If necessary, invest in a safe for these valuables.”

5. Specify portable items if necessary 

He adds that some home contents policies cover portable items (laptops, cameras) even if the items are not specified individually.

However, you would need extra cover to insure them for use outside the house.

“Other policies won’t cover easily portable items even inside your home unless you add them to your policy.

“Read the details in your policy wording and make sure you provide the necessary info.”

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6. Update insurer about home improvements

North says renovating your home or adding new features like solar panels without telling your insurer can lead to gaps in your home’s insurance coverage.

“Check that you have informed your insurer about any home improvements that increase the value of your home.”

7. Look after your home and its contents

Most insurance policies expect you to take basic steps to protect your home and items from damage and theft.

“Your insurance provider might not pay if it finds you were reckless or negligent.

“Failing to address home maintenance issues (like leaks or mould) can lead to claims down the line,” adds North.

Insurers may raise premiums if damage results from neglect due to perceived higher risk.

He advises people to make a list of good security habits and home maintenance tasks.

8. Make a note about your renewal date

He says it is important to keep track of your policy’s renewal date, as this is when the premium will generally go up.

“Many insurers will impose an above-inflation increase, so it pays off to shop around to ensure you’re still getting a good deal.

“You can often get a better premium price from your existing provider if you query the increase.”

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