A recent Ombudsman short-term insurance report revealed that it received over 10 thousand complaints from the public for the past year. The report also highlights the biggest insurance mistakes made by the public.
Most of the complaints were about motor and home insurance. The Ombudsman overturned 31% of the claims.
According to MUA Insurance Acceptances, many of the complaints centre around people not knowing the terms of their policies.
Clients need to know that if they don’t abide by the rules of their contract, they can expect rejection. They also need to know the different levels of cover their insurer offers in the policy. In this way, they help towards preventing the rejection of their claim.
Biggest Insurance Mistakes – Home insurance and care
Many homeowners face problems when they insure the contents of their home. They fail to insure the house contents for the updated and correct replacement value. This is one of the biggest mistakes.
People renew their policy every year, but they forget to update the level of cover.
Some don’t even maintain their homes and face increased risk of claim rejection. It is the responsibility of the homeowner to maintain and secure their home. Poor building upkeep and neglect are another reason for claim denial.
Biggest Insurance Mistakes – Faulty alarm systems
It is vital for homeowners to ensure that home alarms are up to date and tested regularly. If theft occurs because the alarm wasn’t working, you can be sure of a claim rejection.
Biggest Insurance Mistakes – Motor Insurance
Driving under the influence of alcohol or drugs leads to a rejected claim. Especially in an accident situation. Many people take a chance and drive without having a valid driver’s licence.
If you commit a criminal offence by driving poorly, speeding or causing damage to another car, your policy becomes null and void. You also need to check if your motor policy is for a specified driver only.
Biggest Insurance Mistakes – Windscreen wipers
Windscreen wipers are one of the smaller details of your car, but they need to be in good working order for clear visibility. Involvement in an accident which shows that your car was not roadworthy will lead to a claim rejection.
Biggest Insurance Mistakes – Where do you park your car at night?
Let your insurance provider know where you park your car. Outside in the street, in the driveway not behind a secure gate or in a lockable garage? No claim is allowed if your vehicle is stolen or broken into, and you never make this aspect known.
Clients need to educate themselves on what is required to avoid the biggest insurance mistakes and to keep the risk of claim rejection as little as possible.
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