In the face of the ongoing cost of living crisis, finding ways to reduce expenses has become a top priority for many families across New Zealand. One area where you may be able to make savings is on your insurances. Although ensuring you have adequate cover is important, there are some options you can look at to lower your insurance costs. Read on to explore some of these considerations.
Review your cover
Regularly reviewing your insurance to check you’re insured for the right things at the right amount is a great place to start when looking to reduce your insurance costs. Your circumstances change over time and so do your insurance needs.
For example, perhaps you’ve insured under 25 year old drivers to drive your vehicle but no one under 25 ever drives your vehicle. Therefore you could elect to remove this cover which will reduce your premium as the risk is seen to be lower. Another change in circumstance could be if you’re a smoker on your life insurance policy. If you’ve quit smoking (not smoked at all for 12 months) you can have your policy updated to a non-smoker which will reduce your premiums.
Bundle your insurances
The more insurances you hold with a single provider can help save you money as often it will mean you qualify for a multi-policy discount. You could also potentially save money when making a claim across multiple policies e.g. your house and contents are damaged in one event, as most providers will only charge one excess if you have both policies with them.
Upgrade your security
Ensuring you have a high level of security for your home, contents and vehicle could also reduce your insurance. Installing a security alarm at your home will reduce your premium with some insurers as your risk of burglary or damage to your property and contents is reduced. Also storing your vehicle in a locked garage rather than on the street or in your driveaway overnight can reduce your premiums.
Choose a higher excess
Another option available to lower the cost of your premiums is opting to pay a higher excess in the event of a claim on your house, car or contents insurance. Your nominated excess is the amount of a loss you’ll need to pay in the event of a claim.
However it’s important to consider whether you’d be able to easily access this amount of money in the event of a sudden and unexpected event. It also may mean you’re less likely to make a claim as it may not seem worth it if your excess is a similar cost to replacing something new anyway.
How can a Haven Financial Adviser help?
If you’re concerned about your premiums, speak to your Adviser before making any decisions about your cover. When speaking to your adviser, update them on any changes in your circumstances to help ensure you’re paying the right premiums for your current situation.
Before you go there’s plenty to organise from flights and accommodation to travel insurance and passports. But, have you considered how to make sure everything you own is protected for when you arrive back home? Here are some of our tips to get sorted before you go.
Protect your home
When we’re home our houses are usually safer, we can spot any damage before it worsens and we’re less vulnerable to break ins. Therefore most house insurance policies will have a limit to how long they’ll cover you whilst a home is vacant. So if you’re planning to be away longer, make arrangements before you head off.
Whilst you’re away make sure you’ve locked all your doors and windows and set any security alarms. You may consider having a trusted friend or family member house sit or ask a neighbour to keep an eye on your property for you.
Cover your stuff
Similar to your home, anything you leave in there is more vulnerable when you’re away. Before you go, check how long your contents are covered when your house is vacant. And, make sure to store any valuables out of sight and if possible in a locked safe.
Remember, although your contents policy may cover you when you’re away from home it’s unlikely you’ll be covered if you’re overseas. So make sure anything you’re taking with you, especially valuables like jewellery, are covered by your travel insurance.
Don’t forget about your car
Before you go, consider where you’re going to leave your car. If possible, store in a locked garage rather than on the street or in a driveway. If you’re using airport parking, take pictures of your car before you leave in case of any damage and don’t leave any valuables inside.
If you’re hiring a car whilst you’re away make sure you’re sufficiently covered through the hire company or your travel insurance for any accidental damage. And, don’t forget to bring your driver’s licence with you!
A chance to win the trip
If you’re still dreaming of your winter getaway, check out Haven’s referral competition for the chance to win a $4,000 travel voucher. Simply refer a friend or family member, or sit down yourself, for a no-obligation meeting with a Haven Adviser and you’ll both go in the draw to win. Terms and conditions apply.
A Haven Financial Adviser can help with insuring your house, contents and car. For more information and to book a meeting: https://haven.co.nz/travel/
To help you avoid some of the common mistakes people make when buying insurance, we’re explaining some of these errors and why they may be more harmful than helpful.
1. Not having enough cover
If you’ve had insurance for a while now but haven’t updated it, you might be underinsured. This means that any new assets you have, or any life changes you’ve experienced, might not be covered should the worst happen. You need to review your cover regularly to account for these changes, but also to account for any market valuation changes.
For example, the value you set when you first took out your home insurance might be lower than it needs to be in the current market, potentially leaving you out of pocket should you need to rebuild.
2. Ignoring disclosure requirements
It’s important that you disclose all of the relevant information when taking out cover, particularly when it comes to medical insurance. A common mistake people make when buying insurance is that they don’t disclose their previous medical history, believing that it will make them ineligible for insurance, or that it will mean they have to pay higher premiums.
Unfortunately if you don’t disclose this kind of information, when you need to make a claim it may be denied. If you’re not sure whether something should be disclosed, include it anyway, or get advice from the professionals.
3. Putting it off
One of the most common mistakes people make when it comes to insurance is not getting any in the first place. The insurance-buying process can be complex and confusing, but with the right help, it can be a lot less stressful and will keep you protected when you need it.
This mistake is often made by those who are a bit younger, as they think they don’t need insurance just yet. The problem is that age often comes with an increase in health problems, and the longer you wait, the more you’ll end up paying. Getting insurance sorted as early as possible is key.
4. Taking out the cheapest cover
When it comes to insurance, you often get just what you pay for. That means that if you’re buying the cheapest cover option available, it’s likely not going to do what you need it to, when you need it. That’s not to say you need the most expensive and comprehensive insurance on the market, but it’s important to ensure that your cover is tailored to your specific needs and financial situation.
For the best cover options that work for your needs and your budget, it’s best to speak to an adviser. They know the available products and providers inside and out and can recommend types of cover that will keep you protected without blowing your budget.
5. Going it alone
As we mentioned, getting help from the professionals is absolutely key when it comes to avoiding insurance mistakes. A financial adviser can help you weigh up your options, and can explain your policy in a way that you can understand. They translate the jargon so you know exactly what you’re covered for, and where you might need more protection.
If you’d like to have a chat with one of our advisers at Haven, simply get in touch with us below – we’re here to help!
1. Make safety a priority
In any weather event, the safety of you and your family takes priority. Before you worry about the damages to your property or your items, make sure you head somewhere safe, warm, and dry if you need to evacuate. Be sure to take any essentials such as medication and warm clothing with you.
2. Take an inventory of your damaged items
When it’s safe to return to your property, you can begin to make a list of all of the damaged items. Note down as many details as you can about each item or part of your property – it’s a good idea to include the brand and make/model if you can. Gather together as many receipts for the items as you can to make the claims process easier.
3. Take photos of the damage
As well as listing the damaged items, it’s a good idea to take as many photos of the items as you can. Include photos of the items themselves, zooming in to capture any specific damage where necessary. If there’s been any damage to your house or surrounding property, be sure to take photos of this as well, especially if you will be moving anything for safety reasons.
4. Don’t dispose of damaged items straight away
Avoid disposing of any damaged items before an insurance assessor has a chance to look them over – even if they’re damaged beyond repair. If you need to move damaged items, do so with your safety in mind and make sure you’re wearing protective gear like gloves when handling any broken items.
5. Don’t try to drive your car
If your area has experienced flooding and your vehicle has been fully or partially submerged at any point, don’t try to start it or drive it. Even if it seems fine and the water has since dried, you never know what damage has been done to the engine or any electronic components. You should have your vehicle towed to the nearest mechanic for a safety assessment.
If you’ve been affected by the recent weather events and need some advice, feel free to get in touch with us. Stay safe out there everyone!
Secure your home
When we’re out and about, it’s easy to lock up and leave our home, assuming that when we come back, it will be the same as we left it. Unfortunately, if we aren’t careful, break-ins can occur and our precious possessions can be stolen.
Whenever you’re leaving your home, even just for a day at the beach, be sure to lock all doors and windows and store your valuables out of sight. Try not to advertise on social media that you’re out, and if you’re going away for a longer period of time, have a friend or neighbour clear your mailbox and check on your home.
Check your car before you drive
If you’re heading out on a road trip, make sure that your car is in a safe condition to drive. Check the tread and the pressure of your tyres, and check that your headlights, horn, and wiper blades are in good working order. You’ll also want to ensure that your vehicle has a current registration and WOF.
It’s a good idea to take a look over your vehicle insurance policy so you know where you’re covered. For example, if you switch drivers halfway through your journey, you’ll need to make sure that your policy covers this.
Make sure your insurance is up-to-date
You might have received a high-value gift for Christmas, or made some renovations to your home that aren’t reflected in your policy. If you’re heading away for a break, it pays to make sure you have the right cover where you need it to avoid any nasty surprises.
Take photos and keep receipts of your valuables so that if you need to make a claim, you’ve got all of the details handy and can prove that you own the items and have evidence of the cost. This will help to get your claim approved faster, leaving you to relax and make the most of your trip.
If you need help making sure you’ve got the right cover, come and have a chat with one of our friendly insurance advisers. We can help you protect what matters most so you can go out and enjoy life.
Don’t cancel your home insurance straight away
When moving into a retirement village, it’s likely that you’ll be selling your current home. You might think you need to cancel your home insurance straight away, but it’s important not to do this too early. This is because right up until settlement, you are the legal owner of the property; even when someone purchases your home, they don’t officially own it until the change of ownership documents are signed.
If something like a natural disaster should occur between selling your home and the official settlement date, you could be out of pocket and out of a home if your house insurance is no longer in place. The sale of your home would fall through, and you likely wouldn’t have enough for your new retirement village home, so it’s definitely better to be safe than sorry!
Check what insurance requirements are necessary
Once you’ve chosen the retirement village you want to move into, make sure you take a look at the insurance expectations. Some retirement home complexes will have cover for the entire village, but some may require you to arrange your own insurance.
Because every retirement village is different, their insurance expectations will be too, so it’s important to know what you may need to arrange yourself and what might already be taken care of in your fees. Note that although some retirement villages will arrange insurance for everyone in the complex, you may still be required to pay a separate premium for this on top of any other fees.
Review all of your existing cover
If you’re downsizing your home when you move into a retirement village, you may also need to downsize the contents you bring with you as well. This is a good opportunity to take stock of what items you will be holding onto as you may need to amend the cover you have in place for your contents.
Speak to a financial adviser if you’re not sure how much cover you need. They can help you review the insurance policies you have in place and recommend any changes. For example, if you’re planning on selling your car and using the transport facilities at the retirement village, you likely won’t need vehicle cover going forward.
Remember to also update your insurance provider with your new details once you officially move into your new retirement village home.
Need some help creating a smooth transition to retirement village living? Come and chat to us here at Haven. Our friendly and experienced advisers can make sure you’re protected where you need it so you can relax and enjoy life in your new home.
In New Zealand, it’s not compulsory for drivers to have car insurance and there are drivers on the road who don’t have anything at all.
Say someone else has hit your car but you weren’t at fault, if the other driver doesn’t have insurance, the collision could have an impact on your finances depending on the type of cover you’ve got.
Types of car insurance
Third-party
Third-party is usually a more affordable option given that your cover is more limited. You’re only covered if you damage someone else’s car – it won’t cover damages to your own car.
Some policies give limited cover if the accident is not your fault and the other driver has no insurance, possible covering up to $3,000 for the repairs of your car. You can also be eligible for cover in the event of theft and fire if you have this cover built in.
Comprehensive
Comprehensive cover covers your car for a number of things, such as theft and damages to your car or damage you’ve caused to someone else’s car. You can make a claim immediately for the damage to your car with your insurer.
Often it’s easier to go through your own insurance even if the other driver has insurance so you can have someone sort it out on your behalf. This cover can sometimes have extra benefits, including covering the costs of towing and alternative transport.
How do you choose what cover you’ll need?
We’ve put together some questions to help you figure out what cover is right for you.
Some people prefer to get comprehensive for peace of mind but for others, they prefer to have third-party. If you’re thinking you could be getting better bang for your buck with your car insurance or you’d just like to explore your options, get in touch with us today!
If my business is only small, do I still need insurance?
Small businesses can be more vulnerable to risks as a single event can have a large impact on their ability to recover. You may think that having your business set up at home will mean it’s covered by your contents insurance, but this is usually not the case. It may cover your home office set-up, but it won’t cover any stock you have or your liability if something goes wrong. It’s best to check with your provider to make sure you’re covered where you need to be.
What if I already have house insurance?
If you already have house insurance, let your provider know you are running your business from home. Some providers will continue to insure your home, but it does depend on the level of risk. They will need to know if clients are entering your home, the materials you keep on the premises that could increase the risk of fire or theft, and what type of business you’re running.
What cover do I need if I have stock?
If your business involves storing stock at your home address, your normal contents insurance won’t cover this. While your stock is at home awaiting sale, you’ll want to make sure you’re covered in case it gets damaged or stolen.
Do I need vehicle insurance?
If you’re using your personal car for business purposes, such as running work-related errands or meeting clients, you need to make sure you have a commercial vehicle policy. On a standard private vehicle policy, if you damage your car while on business errands, your claim would most likely be denied and you would need to bear the cost of repairs.
Do I need liability insurance?
In the event of any legal proceedings resulting from damage or injury, it’s important to keep yourself protected. Let’s say you’re a hairdresser and you used a product on a client that resulted in a severe skin reaction, you might need to provide a refund and pay for any medical bills. Similarly, if a client comes to visit you at your home and has a fall, you could be liable.
Not sure what cover you need in your small business? Get in touch with our friendly team today – we’ll get you sorted!
1. Protect your open home
It’s important to understand the risks associated with open homes so you can prevent these where possible. You should check with your insurer if your policy covers any accidental damage or theft during your open home. To prevent loss or damage, make sure you put your belongings in a safe spot, and always have a real estate agent present who can control entry.
2. Mind your contents
Often while you’re in the process of selling your home, your contents may need to temporarily shift to another location until you can move into your new home. Depending on your policy, contents insurance usually only covers your item at a location you’ve specified. If you’ll be storing your belongings somewhere else, you’ll need to let your insurance provider know to ensure your contents will be covered while in storage and while they’re in transit.
3. Wait until settlement
You might want to cancel your insurance as soon as your home is sold, but don’t forget that you’re the legal owner up until the settlement date. If something were to happen to the property between the sale and settlement and you were no longer covered, you would still be liable. Keep your insurance until the buyer is the legal owner, and if the settlement date changes, make sure your update your insurance provider.
If you’re selling your home and looking to buy a new one, get in touch with our friendly team today!
Advisers can talk you through your options
If you’re on the fence about cancelling your insurance altogether because you still want to be protected if the worst should happen, advisers can discuss the options. This could be reducing your cover, or changing your excess and wait period options. Advisers work with people of all backgrounds and budgets, making them well-versed in tailoring options to suit your needs.
They can help you figure out if you still need the cover you have
If you haven’t looked at your insurance policies for a while, you might actually have cover in place that’s no longer necessary, or that isn’t right for you. Sitting down with an adviser and discussing what’s changed in your life since you took out your cover might help you to reduce your premiums, or at least give you a better understanding of the cover you want to prioritise.
An adviser can help you understand the consequences
If you do decide to cancel your cover, it’s important that you’re fully aware of the consequences of doing so before you make your decision. An adviser can discuss what cancelling your insurance would mean for you, including your ability to take out any cover in future, so that you can make your decision knowing the risk you’ll potentially need to take on.
They can help you plan for the future
Sometimes you’ll cancel your insurance because you just don’t need certain kinds of cover anymore – that’s great, but it’s still a good idea to talk to an adviser about how it might impact your future. For example, if you’ve paid off your mortgage already, you might want to cancel your life cover, but if you then decide to purchase another home down the line, it might be better to have kept your existing cover in place.
If the worst happens, you don’t want to be left without the right cover to protect you and your family. Especially if finances are tight, it can pay to keep up your premiums as much as you can so that you don’t end up needing to fork out for expensive treatments. If you’re looking at cancelling your cover for whatever reason, have a chat with your adviser first – they’ll get you sorted with the right solution for your needs.