There are so many different types of insurance policies available today that it can seem like a bit of a minefield. When you combine this with all of the different providers out there, it is of no surprise that people feel overwhelmed. So, before you start shopping for insurance, read on to discover four facts that you should know before you do…

For high-value items, you need high-value insurance

A lot of people do not realise that you can get insurance for high value homes, cars, and any other luxury items that you may own. From jewellery to pieces of artwork; there is an insurance policy for it. It’s better to go for a high-value insurance company, rather than a general insurance firm. If you were to take out a standard insurance policy, it probably wouldn’t cover anywhere close to the amount you need it to.

A high-value home insurance policy, for example, is going to provide much better coverage for buildings that have a value that is higher-than-average, for example, homes with special design elements or features and heritage properties. These insurance policies tend to be a lot more comprehensive as well, covering a wide range of circumstances. Not only is this type of insurance policy worthwhile for properties that are worth a lot themselves, but it is also advisable to go down this route if you own expensive or priceless wines, jewellery, collections, rugs, fine arts, or other special items that are kept within your home.

Life insurance does not just apply a monetary value to a person’s life

A lot of people are confused about life insurance and whether or not they need it. If anyone relies on you financially, whether it is your children, partner, or someone else, then you need life insurance. You don’t even need to be the breadwinner for this to be the case. In fact, a lot of people also use life insurance as a strategic monetary tool, but that is another story.

A lot of people assume that life insurance works by applying a monetary value to a person’s life. This is not the case. Instead, it will help to compensate for the inevitable monetary consequences that the loss of life will have. Strategically, it will help those who have been left behind to deal with lost income, planned educational expenses, outstanding mortgages and debts, and the costs of final expenses.

Most crucially, though, life insurance will lower the financial burden people are experiencing at a time when they are coping with the loss of someone they love. Furthermore, it can give great peace of mind to the person who has taken out the policy. This is why it is often deemed one of the most critical types of insurance.

You need to update your coverage

A lot of people simply purchase insurance and then forget about it. However, you need to make sure that you evaluate your coverage whenever you go through a change in your life, whether this is a marriage, childbirth, or anything else significantly. You also need to make sure that you assess your insurance coverage at least once per year. Make sure your policy limits are increased should your home go up in value for example.

Another example is when your children leave home. Let’s say one of your children used to be on your car insurance. If this is the case, and they have since moved one, make sure you let the company that insures your vehicle know that it is just going to be you and your partner driving. This can help you to lower your premiums. You may even be able to reduce your premium if you are not driving as much.

Whenever you do an annual review, make sure you do it 30 to 60 days in advance of when your policy is due to be renewed. This will ensure that you have enough time to assess all of the options that are out there and determine what is going to be best for you.

Not declaring is just as damaging as telling a lie on your application

Whether you are making an application for health insurance, life insurance, home insurance, or anything else, not only do you need to be truthful but you need to make sure you declare anything relating to your policy. A lot of people think that failing to declare something won’t work against them. After all, you can just say that you didn’t realise such information was needed, right? Wrong! If you don’t declare certain information, this can result in your claim being denied.

There are many examples of this happening. For example, there have been a lot of cases whereby medical insurers have not paid out because people have failed to declare about pre-existing medical conditions. There have also been cases whereby people have had their travel insurance policy made void because they failed to declare that they would be pursuing a dangerous activity such as rock climbing or skydiving.

When it comes to insuring your property, if you add items that you don’t actually have to your contents insurance claim or you falsify receipts, you could not only end up without a valid insurance policy, but you may even end up being prosecuted, so it is really not worth the risk.

If you are ever unsure regarding what information you need to declare, the best thing to do is to call your provider and to ask them for their assistance. They will be able to advise you, and you will also be covered because you have attempted to do everything properly.

So there you have it: some of the different facts about insurance. Before you go shopping for insurance, it is important to be aware of the facts that have been discussed so that you can make the best decision for you. With so many different policies out there, it is important to narrow down your search effectively.