Parents have so much to think about, especially when it
comes to essentials like savings for the family, healthcare or provisions
should something bad like a dread disease happen. There are many aspects of modern
family living that require thorough planning, and short-term insurance should
be key among them.
Home is where the start is
Your house is the hub for family gatherings and
day-to-day living, but is it covered properly for worst case scenario? If you
are paying your home off, chances are you have insurance attached. You don’t
have to opt for your home loan provider’s insurer, so check your best options.
If you have paid off your property, you still need cover against floods, fire,
and crime. Your largest asset could be your biggest regret, if you don’t keep
cover in place.
When it comes to building cover, the replacement value
for your property needs to factor in any demolition and site-clearing costs, in
addition to rebuilding the house, with materials at current prices. Don’t just
assume that the value of your property as stated on your rates bill is right,
as it is typically based on municipality valuation instead of actual
replacement cost of your unique home. Get your property valued and have this
updated at least every three years to keep up with the proper replacement
It’s not on top, it’s inside
Every item in your home has value, from your piano to
your winter duvet to your family’s heirloom dresser and the flat screen TV.
Each outfit, accessory, and shoe per family member, not to mention every
gadget, cooking pot and picture frame. The value, however, is not just
sentimental. What matters is how much it would cost you to replace each item,
as well as collectively. The collective value of all these goods is how much
you need to insure your home contents for. There are online calculators to work
this out, and at least annually you should review things (as often new toys,
clothes, appliances, or devices are added to or depart from family homes).
You won’t end up with a disproportionate pay out from
your insurer if you over-insure, since they will only replace the equivalent of
what you have actually lost, but if you are underinsured, your pay out won’t be
sufficient to replace what you have lost.
Park problems before they appear
Your family vehicle (perhaps you have more than one) is
another key asset to keep covered. In the event of an accident, you may not
have access to the vehicle while it is being repaired, and vehicle hire
cover can really help cut the inconvenience and extra costs of getting around.
Remember that leisure vehicles like caravans or trailers need to be serviced,
properly licensed and need well-maintained tyres to be insurance savvy and safe
on the roads. Keep bicycles and equipment like canoes or surfboards covered
too. Anything that could get damaged and replaced, should be insured. You just
need to keep cover up to date and manage any wear and tear issues as they
The inner circle
Security features at home matter and your kids need to
know what must be locked to keep insurance in place. It’s best practice for
everyone at home to know what the checklist is for keeping safe at home,
especially if these steps align to your insurance cover.
It’s always a good idea to practice safe gas use in the
house, for appliances like stoves, or if heaters begin to emerge in the colder
months. Safety around open flames is also important and even though
freestanding homes don’t require a fire extinguisher by law, having one or even
two could literally be a lifesaver.
Your digital set-up
Many families have internet access at home, with various
individuals and devices signing into many different social or email accounts
and apps over WIFI. Keeping passwords updated and installing proper anti-virus
software is so important. With many of us working from home, the risks for
cybercrime activity have increased even more. Instilling safe online practices
throughout your family home is a very sensible move to make.
Get some extra support
Working closely with a financial adviser can
help to fit insurance into your life, alongside the various products you need
to protect your family. Don’t delay, life is too short. Accidents can happen,
and it’s best to be ready to deal with them. Insurance definitely makes dealing
with life’s surprises easier and more affordable, provided you keep up with the
terms and conditions of your policy.
Article written by Bertus Visser, chief executive of
distribution at PSG Insure
Featured in Cover magazine
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