At InsuranceBusters we believe in giving our clients the best possible information and options in order to make the right insurance decision for them. Take a look through our tips and advice to gain a better understanding of Short Term Insurance

First things first, in order to receive the insurance result you need to understand all the various terms properly - read our Q & A to clarify any doubts:

Q. What are exclusions, endorsements and warranties?

A. Exclusions are:

• Events and/or items that you are not insured for
• Limitations on the cover provided in the policy

Endorsements are:

• Alterations made by your insurer to the terms and conditions of your insurance policy that refer specifically to you
• Any extensions of cover requested by you

Warranties are:

• An undertaking or promise that a certain set of facts are true and correct or must be complied with in the future

Q. Why do policies contain exclusions?

A. Exclusions are there to protect both your interests and the interests of the Insurer. As a policyholder you have the right to know exactly what you are - and are not - insured for. To this end, insurers are obliged by law to ensure that any Exclusion is clearly stated.

The insurer must underwrite the risk in accordance with terms and conditions that would make the risk insurable.

Q. Why do policies contain endorsements?

A. Endorsements, like exclusions, ensure that an insurance policy is geared to your specific needs. They have to be clearly stated because you have the right to know of any situations or circumstances that amend the original terms and conditions of your insurance policy.

Q. Why do policies contain warranties?

A. Warranties are undertakings or promises with regard to specific terms and conditions that could affect the validity of the contract and which should be strictly complied with. If you accept a discount for installing a burglar alarm and/or tracking device, you must ensure that the burglar alarm and tracking device is installed and is maintained in good working order. If this is not the case the insurer may reject the claim.

Q. What is an excess/ "first amount payable"?

A. An excess - also called the 'first amount payable' - is the amount of money that you, as the insured person, are responsible for in the event of a claim. The excess is the uninsured portion of your policy. The excess or excesses must be clearly stated by the insurer, either in the policy document, schedule or in an endorsement.

Some policies have excesses applicable to several sections of the policy. For example, the House Owners section, Household Contents section, All Risks section and Motor section, can all contain excesses.

Q. Why is an excess payable?

A. An excess is payable to control the cost of cover and to manage the risk. An excess may be used as an instrument to help keep your premium lower if you elect to take a higher excess.

If you wish to reduce your excess then some insurers will give you the option to take out a policy to insure your excess for an additional premium. In return the excess will be removed or reduced on your main policy.

When another person negligently causes damage to your property the insurer can elect to recover the cost of the damages from that person. As a service to you, the insurer will often attempt to recover your excess in addition to the loss even though the excess is for your account.

Q. What are 'bonuses'? How do they affect you?

A. Other common names are no claim bonuses/discounts or cash back bonuses. Bonuses are essentially rewards that an insurer gives to its 'good' clients. 'Good' clients are those who do not claim against a policy for a given number of years. Bonuses can take the form of reduced premiums/discounts or cash-back payments. Some insurers may refund a portion of the premium after a period of claim-free years, or offer what they call 'loyalty' bonuses. Loyalty bonuses may also provide the insured with additional protection or benefits in the event of a claim. It is your responsibility to find out which of these schemes is offered by your insurer.

Q. How can you obtain reduced premiums for household contents and motor vehicle insurance?

A. Discuss with your insurance adviser or insurer any security features that you believe may entitle you to a premium reduction. These would normally be in addition to the minimum protection requirements required by an insurer. They may differ from region to region. Some of the things that might affect your premium are:

• Your age
• Whether or not your home is protected by security gates and/or a monitored linked alarm
• Whether or not you store certain items of value in a safety deposit box
• Whether or not you are living in a 'secured living' environment
• Whether or not you are the only driver of your vehicle, and if not, how many drivers there are
• What you use the vehicle for, i.e. private or business purposes
• Whether or not your vehicle has an insurance approved tracking device
• Whether or not you have proof of "No claims" from your previous insurer
• Your claims history
• Voluntary excesses

There are many other features that could attract a discount. Ask what they are.

Q. Why does an Insurer require so much information about your financial circumstances?

A. Insurers need information about your financial circumstances for a number of reasons:

• They need to be reasonably certain that the premiums can be paid
• Insurers are also entitled to consider whether the financial circumstances of the person being insured are likely to influence the chances of a claim being made. That is why you must disclose - whether asked to or not - if you have any fraud convictions, any judgements against you, or if you are, or have ever been an insolvent.

Q. Why must you notify your insurer of a claim within a specified period?

It is your right to expect payment within a reasonable time after submitting a claim. It is also the right of the insurer to receive - within a reasonable period of time - notification of an event, which could give rise to a claim. Failing to notify an insurer within the stated time may prove costly for the insurer. For example, delays may cause repairs or replacement costs to escalate. Delays can also cause an insurer increased legal liability. Where investigations are required about the theft of your vehicle for example, the sooner the process starts the better the chance of recovery. In cases of theft or accidents involving your vehicle, or burglaries or theft of goods from your home, or theft or loss of items covered under an All Risks section, the insurer may require you to report the incident to the police within 24 hours.

The normal period of notification to the insurer is 30 days from the date of the event for which you are going to claim. Insurers may, on compelling grounds, choose to extend this period of notification.

Q. When is a claim fraudulent and what are the consequences?

A. You make a fraudulent claim if you:

• lie to your insurer
• Claim for items that you did not possess
• Overstate the value of an item that was stolen, lost or damaged
• State incorrectly the circumstances of the loss

Making a fraudulent claim is a criminal offence. It can result in prosecution and your insurance cover being cancelled. It may also result in you never being able to get insurance cover again. It is the policy of insurance companies to criminally prosecute anyone who submits a fraudulent claim.

Q. What is meant by Territorial Limits?

A. Territorial limits refer to the geographical areas where the insurer provides cover. Should cover be required outside the territorial limits stated in the policy then you must notify your insurer to enable them to consider extending the cover.

Q. What is meant by "betterment"?

A. The term refers to a deduction made by the insurer for an increase in the value of the insured item as a result of repairs done by the insurer. It is important to remember that betterment does not apply to a part of the insured item that is being repaired e.g. betterment will only apply on tyres if the insurer can prove that the value of the insured item (i.e. the vehicle) has been increased.

Now that you have a better understanding of the insurance process, we can move on to some very valuable tips:

10 Home Insurance tips...

1. Choose an independent broker.
   The advice you'll get from an agent that only represents one insurance company will be different from the advice you'll get from an independent broker, such as InsuranceBusters, that represents several competing companies.
2. Be specific.
   There are many options available so if you want to make sure your home is totally insured, state that you want to buy full replacement coverage.
3. Answer all questions truthfully.
   The insurance company needs to know the size of your home, other structures, the style of construction, major improvements, unusual features and your high value personal property items.
4. Know your limits.
   Follow the consultant's recommendations on increasing or maintaining your limits. Get and keep a record of the broker's confirmation that your limits are adequate.
5. Specify according to cost.
   Some items such as jewellery, pieces of art and collectibles may be better insured if they're specifically listed in your policy contract. This is known in the industry as "scheduling." Scheduled personal property items are listed with separate coverage limits in a document that becomes part of the policy contract.
6. Keep us informed.
   Make sure you tell your consultant about improvements to your home.
7. Take the right steps.
   Make your home eligible for better, cheaper coverage. To qualify for the best coverage, homeowners need a newer roof, updated plumbing, wiring, and a bolted foundation. Ask your consultant what you can to do to lower your risk of loss.
8. Avoid extra hassles after loss.
   Photograph or videotape your home and contents and store copies of the photos or the negatives off-premises.
9. Look for Multiple Policy Discounts.
   Many insurance companies give a discount to their customers that maintain other insurance contracts under the same roof (such as vehicle or life insurance). Consider obtaining a quote for other types of insurance from the same company that provides your homeowners' insurance. You may end up saving on two annual policy premiums.
10. Plan Ahead for Construction.
    If you plan to build an addition your home or another structure adjacent to your home, you should consider the materials that will be used. Typically, wood-framed structures (because they are highly flammable) will cost more to insure. Whereas, cement- or steel-framed structures will cost less because it is less likely to succumb to fire or adverse weather conditions.

10 Car Insurance Tips...

1. Purchasing a new car
   When purchasing a new car you need to confirm that your car is insured before driving it off the dealers floor. If you are financing the car then it will be required for you to have car insurance before you will be allowed to take delivery of the new car. Speak to your consultant before your delivery date.
2. Performance vs Age
   When considering buying a car you will need to take into account that car insurance companies attribute a high risk factor to regular drivers that are under 25 and drive a high performance car. This means that some car insurance companies might not insure you if you fall in this category or your car insurance premium might be very high.
3. Possible Discount
   Discuss all your car insurance options with your consultant to find out how you can save on you insurance premium. After market alarm systems, tracking systems and anti high jack systems could save you quite a lot on your monthly car insurance premium by lowering your risk profile.
4. Take out the right insurance cover
   ake sure that your car is insured for the correct use. If you simply use your car to and from work then you can take out car insurance for private use but if you use your car to see clients or transport goods you will need to take out business use car insurance. This is due to the fact that your car insurance risk profile increases if you drive and use your car more often.
5. Regular driver
   Always confirm that the driver that drives that car the most is the person that the car is insured for. This could have an influence on the excess of your car insurance if the car is in an accident with a driver other than the regular driver.
6. Accessories
   Always make sure that you specifically add any additional accessories to be covered by your car insurance policy. This includes any accessories that aren't factory fitted. Your car insurance company will not cover you for these items if you don't specifically specify this. This includes mag rims, special interior trims, tow bars, window tints and even metallic paint.
7. Car Inspection
   Some car insurance companies might require that you take your car to a car inspection centre of their choice to be inspected. Make sure you do this and that you keep a copy of the inspection certificate as this might have an influence on your future car insurance claims.
8. Know your car insurance terms and conditions
   Make sure that you are always familiar with your car insurance terms and conditions so that you know what you are covered for and what not. This will also enable you to manage your risks better by changing your car insurance policy to cover you to the best extent.
9. Do not tow
   If it is part of your car insurance companies policies that only authorised towing companies tow your car you need to confirm that you have the "Do not tow" sticker in your car to make sure your car is not towed by an unauthorised towing company when you are not able to make arrangements for your car.
10. In case of an accident
    Make sure that you take all the insurance details from both parties involved in the accident. Also make sure that you report it to the police within 24 hours of the accident. This is needed for you to make a valid car insurance claim.

Get better premiums today - with InsuranceBusters!