Why Should I Review My Insurance Policy Before Renewal?

My name is James and I’m the Pro-Active Renewal Supervisor at Source Insurance. Today, I’m going to talk you through different things you need to check before renewing your insurance.

There are factors you might miss because there can be a lot to look out for, which is understandable. But, I’m here to help! Here are some things to keep an eye out for when reviewing your policy before renewal.

Checking all your details are up to date is the bare minimum. As you know, life changes like marriage and engagements occur frequently, so your insurance policy may need updating to be accurate.

Make sure your cover still meets all your requirements. Check that nothing has been overlooked to ensure you’re sufficiently covered.

Are you happy with the new premium? With the market constantly moving and changing, it’s always worth checking different insurer prices before renewing. This will help you to get the best deal that suits your needs.

What Are the Key Factors I Should Consider When Reviewing My Insurance Policy Before Renewal?

Make sure you know when payment is due at renewal. Sometimes payments might be missed due to unique life situations, which can be frustrating for all involved. Be thorough by knowing your payment dates or you could face extra charges or policy cancellation.

Additionally, decide on annual payments or monthly direct debits so you can budget accordingly. Most policies will cost less overall if you pay in one go, but you may find it easier to pay monthly rather than in one lump sum. 

Can You Outline Some Common Mistakes Someone Might Make When Renewing Their Insurance?

One common mistake I’ve seen is policyholders not adding new family members to their insurance. This can leave you underinsured or unprotected if you need to claim, so be sure to update your policy to add new family members.

Overinsurance and underinsurance are frequently overlooked when renewing insurance. As I’ve highlighted, life changes are expected. Because of this, you need to check whether you’re overinsured or underinsured.

If you’re underinsured, you’re not protected for everything you’d like. If you’re overinsured, you’re potentially paying for cover you don’t require, exceeding the level of cover needed.

How Can I Avoid These Mistakes?

First and foremost, ensure your policy is accurate, or you risk not being covered when making a claim. This is essential in ensuring you’re well-informed about what you currently have covered. You’ll then have an idea of anything that needs changing.

If you’re unsure about anything, it’s always worth asking questions to your broker or your insurance company. We’re here to help!

Read over all the renewal documents. These will provide you with your new premium and details of your new insurance policy. You might be left unhappy with your new cover if you skim over these or don’t read them.

How Often Should I Reassess My Policy, and What Common Changes Should I Look Out For?

Anytime you plan on making a change to the property, make sure your insurers and adviser are informed. If you don’t disclose building work and you need to claim, you won’t be covered by your insurance and your insurer may even cancel your policy.

Specify if you add a valuable item to your home. For example, if you get engaged, the ring will most likely be worth more than £1,000. In this case, you must declare this item specifically to protect it. 

As mentioned earlier, life changes can often mean a policy rejig is needed. For example, if you’ve recently had a baby then it’s worth looking at your insurance for anything that might need changing. It’s free to check over!

How Does the Renewal Process Work?

An insurer will base the renewal price on their information about you and your property. 

They will also look at claims within that postcode and determine the new premium based on their findings. This won’t always change your new premium, but it can in certain instances.

New documentation is then produced. It will be sent to you by your chosen method, such as post, eDocs, or online portal.

It is then your responsibility to view the documentation and ensure the cover meets your needs, checking the information is correct.

If you have any questions about your insurance policy, contact Source Insurance on 029 20 265 265. Alternatively, if you have a query about your renewal, contact one of our agents, and we’ll assist you.