Don’t be a twit – insurance mistakes you can easily avoid

The late Roald Dahl would have turned 109 on 13 September, as we honour a legacy of stories that have captivated young readers around the globe for decades.

But what’s this got to do with insurance? In the spirit of Roald Dahl’s storytelling prowess, we thought we’d assemble this handy guide on insurance mistakes you can easily avoid (so you don’t look like a twit).

Underinsurance

When James’s peach started growing, did he remember to update his insurance valuation? What about when it became the size of a house – surely he let his insurer know, then?

As our home is likely the biggest investment most of us are likely to make, it’s important that we make sure it’s insured for the right amount, or risk having to pay out of our own pockets in the event of a claim. We recommend working with an experienced broker and considering a home rebuild cost valuation for extra peace of mind.

Not reading the small print

If eight-year-old George Kranky had bottled his marvellous medicine and sold it nationwide, the disclaimer would’ve been a nightmare: May cause shrinking, stretching, vanishing, or general chaos. Not suitable for grandmas.

It’s a good reminder that what’s written in the small print matters. Your policy documents might not come with magical side effects, but they do come with exclusions, limits and excesses, and those can make a big difference when it’s time to claim.

Before you sign, take a moment to check: is your cover right for you? Are the limits realistic? Is the excess manageable? Because, unlike George, you won’t be able to magic your way out if it doesn’t work for you.

Choosing the cheapest policy

In Matilda, it wasn’t Harry Wormwood’s cheap car that brought down Miss Trunchbull, it was her refusal to change, to listen and to see what was right in front of her. She clung to control, ignored the warning signs, and ultimately lost everything. 

We’re not saying selecting the cheapest policy is a bad thing – we’re saying that not looking into the details can come back to bite you. In the short term, the cheapest policy might seem like the best solution, but in the long term, inadequate coverage can leave you exposed to risk. 

Not disclosing key information

In Roald Dahl’s world, there are good liars and bad liars. Mr. Wormwood scams his customers (bad), the Twits constantly lie to each other (bad), and Matilda tells her parents she’s watching TV when she’s sneaking off to the library (good?). 

Unfortunately, the world of insurance takes a rather black and white approach to lying: it’s all bad, always. In fact, you’re legally obliged to tell the truth to the best of your knowledge when taking out insurance. If you’re caught out by an insurer for not disclosing all the relevant info, your policy may not be valid and they could refuse to pay out in the event of a claim. 

Ignoring cyber risk

If only cyber threats could be sniffed out and squashed like chickens in Mr Fox’s coop. But unlike Boggis, Bunce and Bean, today’s cyber criminals are clever, coordinated and constantly evolving – and they’re not going anywhere. 

That’s why it pays to think like the fantastic Mr Fox. He didn’t waste time simply hoping the farmers would back off; he planned and prepared so he could be sure his family had a way out. Cyber insurance works the same way: it won’t stop an attack, but it can help you recover quickly and land on your feet. 

Because in a world full of digital danger, being cunning isn’t a luxury but a necessity. 

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems, we recommend that professional advice be sought.