Dora (not her real name)’s cosy 2-storey terrace house in the upper-middle market residential area in PJ was burgled a couple of weekends ago. The following work day she called her insurance company and was dismayed when she was informed that her Houseowner/Householder policy did not have coverage on contents. So, what happened? She recalled listing the contents when she first purchased the policy, so how did this “dissappeared” from her policy?
Her recollection took her back to the time when she had to relocate to the city. She rented out her double storey house and deleted the coverage on the contents as these were moved to her city home. [The same policy continued to run covering only the building throughout the years.] She didn’t feel the need to insure her contents at her city condominium then because she felt that it was “safe” there with the 24/7 security. When she moved back to her PJ home years later, it just slipped her mind to reinstate the cover on the contents, and this went on for another 5 years until the break-in occured.
To safeguard our own interests, it pays to review our personal insurance policy – regardless of class of insurance. Rule of thumb is to review at each renewal, but the truth is, it should be reviewed also as and when there’s material changes involving the subject insured. Eg. Whilst renewing your Personal Accident insurance policy, you may want to consider increasing the sum insured or add on a medical benefit cover. A couple of months later, you change job from a lecturer to a site engineer. The hazard of the new job has changed considerably requiring you to declare so to the Insurer. Failure to do so, may compromise the cover and at worst, render the policy void.
Another example, an All Risks policy lists a Hewlett Packard PC as one of the items covered. The policyholder decided to trade in the PC for a Dell notebook but failed to inform his/her Insurer, as a result, the notebook’s not insured.
It pays to know what your policy’s coverage is and what it is covering. You paid the premium didnt you, so, do yourself a favour and do your homework. 😉
[The views expressed above are strictly the author’s own and does not in anyway represent that of her company’s]