General insurance is a “boring” subject, however protecting what you have is just as important in your retired life as it was in your working life.
Here is a couple of thoughts to get you started:

Shop around for insurance like you shop around for a car or plan a holiday
When you’re buying a car or planning a holiday, insurance is probably the last thing you want to think about. But you may need it and it’s important to spend a little bit of time shopping around.

Having a good insurance policy can make all the difference to your pocket, both now and if the worst happens and you need to make a claim.

Don’t just accept the insurance policy that is offered by the car yard or the travel agent. Remember, the agent may be getting a commission for selling you a particular policy, even though it may not be the best one for you.

Shop around. The Internet and phone calls make this easy. Even if you make just a few quick phone calls to different companies, you’ll find that the price might vary by $100 or $200 or more.

Before you sign a policy, make sure you understand what the insurer will and will not cover. For example, some travel insurance policies might not cover you if you are injured when bungy-jumping or white-water rafting. If you don’t choose a policy with the right coverage for you and your circumstances, you could end up with hefty expenses to pay.

Be truthful
When you apply for insurance, you’ll have to provide lots of details to the insurance company. For example, if you are getting car insurance, you may be asked about your driving record, whether the car has been modified and other things. Your answers will help the insurance company decide how risky it will be to insure you and therefore how much your policy will cost.

Don’t be tempted to stretch the facts! If the worst happens and you need to make a claim on your policy, your insurer may have grounds for refusing to pay your claim.

This goes for renewals as well. You must tell the insurance company about any changes in your circumstances each time you renew your policy.

Think about insurance before you choose your car
If you are buying a car, it is good to think about insurance before you choose the type of car that you want.

For example, a sporty car might look great, impress your friends and satisfy the midlife crisis, but it might cost you $200 or $300 more to insure than a basic car. If your dream car has got modifications, like mag wheels or a bigger engine, insurance might cost you more again. It’s better to be prepared for these extra costs than to get an unpleasant surprise after you have bought the car.

Home insurance – building and contents
For most of us, our largest and most important asset is our home. So, are you financially prepared for a flood, storm or fire, or even the minor mishaps such as broken windows, theft or appliance mishaps?

Building and contents insurance are in fact two different policies. Depending on your circumstances, you can purchase a combined policy, or you could purchase just a policy for your building or just your contents. For example, if you are renting your current home you will probably only need to purchase contents insurance, the landlord should have their own building insurance policy to cover the actual property.

Do not underinsure your home or the contents on the false premise of saving money because of cheaper premiums. If a fire or cyclone were to strike your home and you needed to rebuild, having an insurance policy which only covers 50 or 60 per cent of the rebuild cost would create a huge hole in your retirement savings.

 

Source: Mark Teale | Centrepoint Alliance