What’s changed since you last reviewed your land lease home insurance?

It only takes a few minutes to review your insurance policy at renewal to check whether it still suits your needs.

There are some things we know we should do regularly. Check the smoke alarm batteries before they start chirping in the middle of the night. Reserve your family’s Mother’s Day lunch before all the nice places are booked out. Review your home and contents insurance policy when the renewal documents arrive.

We can’t change your batteries or book a table at Mum’s favourite restaurant, but we can show you how to review your insurance policy at renewal. The good news is that it only takes a few minutes to look around your home and think about what’s changed since last year.

You may be surprised by how much is different.

Start with what’s changed

Think back over the past 12 months. Have you renovated or made other changes to your home? Have you replaced or upgraded your smartphone or tablet? If it’s been a few years between upgrades, the cost of replacing technology may have changed significantly. Have you bought a new television, furniture or appliances?

It’s worth keeping in mind that some replacement costs may be lower than you expect. A television, for example, may cost less today than the one you bought a few years ago. Then there are the things that may have left the house. Maybe you spent winter decluttering, sold or given away something valuable.

A useful question to ask as you look around is ‘What would it cost to replace what I own today?’

Ask yourself a few questions

A quick insurance cover review can begin with three simple questions.

• What have I bought, replaced or got rid of since my last renewal?
• Has anything changed in my home or household?
• Do my building and contents sums insured still reflect my current circumstances?

If one of those questions makes you stop and think, take another look at your policy documents.

Check all the numbers

When your renewal arrives, the premium is probably the first number you notice. But take a few minutes to check the other numbers as well.

Look at your building and contents sums insured and consider whether they still reflect your current circumstances. Replacement costs can change over time while renovations may affect the cost of rebuilding a home.

If you’re not sure where to start, the MHIA building and contents calculators can provide estimates to help you review your sums insured.

But remember, calculators are a guide only, so consider your own circumstances and the information in the Product Disclosure Statement (PDS) and other documents that apply to your policy.

What is underinsurance?

ASIC’s Moneysmart explains:

Underinsurance means your insurance won’t cover the full cost to rebuild, repair or replace what you’ve lost.

It also identifies not reviewing your insurance cover regularly as one factor that can contribute to underinsurance and recommends checking your home insurance each year and after major purchases or renovations.

You can learn more about underinsurance and estimating rebuilding and replacement costs on the Moneysmart website.

Think about your excess

Your excess is the amount you contribute when you make an insurance claim.

When you call MHIA to review your policy, did you know you can also ask how changing your excess would affect your premium?

A simple way to do this is:

1. Review your policy first. Let your MHIA insurance consultant know about any changes and confirm the building and contents amounts you want insured.

2. Ask about the excess levels available. Once those details are settled, ask what your annual premium would be at each available excess.

3. Compare the figures. Look at the difference in premium alongside the amount you would need to contribute if you made a claim.

This gives you the actual figures for your policy so you can decide which excess works best for you.

It’s okay to ask your insurer a few questions too

At MHIA, we encourage customers to check their policy at each renewal and ask questions if anything isn’t clear.

When you call, you may want to ask:

• Do I need to tell you about any changes I’ve made to my home?
• Are there limits that apply to any higher-value belongings I own?
• Do I need to update any items listed separately on my policy?
• Where can I find the PDS that applies to my policy?
• Are there other MHIA policy options I should know about?
• Is there anything on my Certificate of Insurance that I need to update?

If something isn’t clear, please call us before you renew.

Your renewal is more than just the premium

Your home and contents insurance policy renewal can be used as your yearly reminder to review everything.

Read your Certificate of Insurance and the PDS that applies to your policy. Look at your sums insured, excess and any other details that relate to your home and contents.

Not sure how to read and understand your PDS? We’ve got your covered with our handy guide to understanding your PDS

A few minutes at renewal can help you keep your policy information current and reduce the chance of an unwelcome surprise if you need to make a claim.

When your next renewal arrives, check what’s changed and contact the MHIA team before you renew if you have questions.