Every year, your contract with your short-term insurance company is automatically renewed. Often, people simply allow their contract to ‘tick over’ without having scrutinised it to check that they’re neither over- nor under-insured. ‘Spring cleaning’ your insurance policy will make sure you maintain the right amount of cover and may even help you save some money in the long run.

“As life changes, so do your insurance needs. By taking the time to review your policy annually, you can ensure that your policy details are correct, and your coverage is aligned with your current situation, preventing both under-insurance and over-insurance. This proactive step will not only protect your assets but can also reveal opportunities to optimise your premiums. It’s a financial health check that everyone should prioritise,” says Marius Kemp, Head of Personal Underwriting at Santam.

It's time to dust off that insurance policy, give it a thorough read and as Kemp suggests, do the following 3 checks:

Check the amount your home is insured for

If you’ve enhanced the value of your home by replacing your roof, redoing your kitchen, or adding solar panels, you need to increase the amount your house is insured for too. Your house (its structure) and your belongings (the contents of your home) must be insured at their replacement value – that is, what it will cost you, at the time of a claim, to replace the building (your home) or belongings with similar, new structures or items.

Doing an insurance spring clean is the perfect opportunity to take into consideration any structural adjustments, additions or renovations that have taken place during the year, and how those changes may impact the amount of cover you need.

Do a home contents recon

The main reason for reviewing your policy is to make sure that you are insured for the right amount – this is what insurers call the ‘sum insured’ or ‘limit of indemnity’. Over the course of the past year, you may have acquired a few more assets or valuable items, such as a brand new bicycle or laptop, or even updated your home security. If you have, then it’s the ideal time to adjust the contents of your home insurance cover or take out adequate home contents insurance in addition to your building insurance and note the security enhancements accordingly.

An important point to remember is that in most cases, your building insurance will cover any structural damage or destruction from events such as fires, extreme weather events and burst geysers. Home contents insurance offers an additional level of cover for the items within the home, including electrical appliances, furniture and other valuables.

As Kemp explains: “your insurer should offer you the flexibility you need to get home contents insurance at a price that suits your budget. For example, with a Santam policy, you can choose a product offering based on your needs, to cover everything from washing on the line, cash kept on the premises and the personal belongings of your domestic workers or guests.

By reviewing what you’re covered for as part of your annual financial wellbeing regime, you can make sure that you have the cover you need as your lifestyle and circumstances change.”

What about your car?

Your car should be insured at a ‘reasonable market value.’ Reasonable market value is the retail value, which is what a dealer would sell it for, considering its age, the mileage, the condition of the car and any extras. As your vehicle’s market value changes through depreciation, the insured amount on your policy may no longer reflect its current value.

The upside of calculating its value regularly is that you may be able to save on your car insurance premium as your vehicle ages. When you do your check-in on your car insurance, it’s also recommended that you review your cover options. For example, if you bought third-party or limited cover, it may be time to consider taking out comprehensive cover for optimal peace of mind on the road.

“Santam clients have the same wide range of options when it comes to protecting their cars as they do when covering their homes. For example, you can choose the amount of cover you would like for credit shortfall (with or without residual), vehicle hire, and accidental damage to tyres or rims,” says Kemp.