This fact sheet is one of a series that looks at the steps you can take to give yourself the best chance of fixing or replacing your property and belongings if they're damaged or destroyed in a natural disaster, such as a bushfire, flood or storm.
See Fact Sheet 18: Glossary for definitions of words and terms that are in bold text.
To find other fact sheets in the series go to www.InsuranceCheckup.tas.gov.au.
Managing your insurance policy
Every insurance policy is different and may have particular requirements, but there are some key things you can do to make sure that your insurance policy stays up to date and you have the best cover if you experience a natural disaster.
Keeping up with your payments
How much you have to pay and how much time you have to make a payment is written on your insurance schedule – a document given to you by your insurer when you purchase a policy. Make sure you pay your premium on time. Typical payment options include:
- Once a year. Most insurers offer a discount if you pay an annual premium because their administrative costs are lower than if you pay on a more regular basis.
- Monthly or quarterly. These payments are usually higher, with some insurers charging a small service fee and others charging a slightly higher premium. Under a monthly instalment arrangement, if you make a claim during the policy period and you wish to continue your cover, you will still need to pay the rest of the annual premium.
- At other times as arranged if you have chosen a more flexible payment schedule, e.g. fortnightly payments. You may also have organised for Centrepay to manage payments if you are receiving a Centrelink benefit. For more information about policies that offer flexible payment options, see Fact Sheet 16: When you think you can't afford insurance.
Renewing your policy
Renew your policy when it's due:
- Most insurance policies run for 12 months and your insurer is required to give you notice that your policy is going to expire. Details about this will be included in the Product Disclosure Statement for your policy.
- By paying your premium, you are letting your insurance company know that you agree to continue the policy.
- If you decide not to renew your policy, make sure you tell your insurer before the renewal date.
Keeping your policy up to date
It is very important to review and update your policy as often as you need to, to avoid being underinsured and protect yourself from suffering a big financial loss:
- You can get in touch with your insurer at any time to review your policy or to ask questions about any part of your insurance cover.
- A good time to have a good look over your policy and update your cover if needed is when you get your renewal notice.
- When your circumstances change, notify your insurer to check that your insurance cover isn't affected, e.g. changes in your relationship status or address, or after you've renovated or made improvements to your home, or purchased new furniture that would increase the value of your home or contents.
- Ask your insurer to review your premium if you have made changes that may decrease your risk of damage, e.g. installed hail-resilient roofing or ember-proofing.
- See Fact Sheet 5: What it would cost you to replace everything you own for advice on how to avoid being underinsured. You can use these tips when buying a new policy or reviewing your current policy.
Remembering your responsibilities
Don't forget your obligations when it comes to your insurance:
- Your insurance policy is a contract between you and your insurer, and you have a legal duty to tell the insurer everything that you know that might influence their decision about whether they are going to accept your risk and offer you insurance cover.
- Once you have bought an insurance policy, you have an obligation to pay your premium. If you fall behind in your payments, the insurer may not cover you for any claim you make. Talk to your insurer before a payment deadline if you think you may not be able to pay your premium; they may be able to work something out with you.
Resources
For general information, and for calculators and other tools to help you manage your own insurance:
- Understand Insurance: www.understandinsurance.com.au
- Find an Insurer: www.findaninsurer.com.au
- Money Smart: www.moneysmart.gov.au
Important notice
This fact sheet gives you basic and general information only. It does not cover every situation or everything you may need to know about insurance. It does not take into account your personal circumstances. Make sure you carefully read Key Facts Sheets and Product Disclosure Statements. Ask your insurer as many questions as you need in order to understand how your insurance policy will work for you. Use other tools available to you and seek professional advice if needed.
Information in these fact sheets has been drawn from a number of publicly available Government and non-Government resources.
This project has been jointly funded by the Commonwealth and Tasmanian Governments under the Disaster Recovery Funding Arrangements.