Insurance

Making sense of an insurance letter or policy

Insurance documents hide the important bits in long paragraphs. Here's what to look for in the common ones.

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Find what changed and what you're covered for

Whether it's a renewal, a policy update or a claim decision, the two things that matter are what you are covered for and what is excluded, and any change to your premium or excess.

Common insurance letters

  • Renewal notice: your policy is rolling over, usually with a new premium. Check if the price or cover changed.
  • Policy change / endorsement: a term of your cover has changed. Read what's now included or excluded.
  • Claim decision: your claim is approved, partly approved, or declined, with reasons and the excess you pay.
  • Request for information: the insurer needs details to assess a claim, with a deadline.

What to check

  • Your excess (what you pay before cover kicks in) and any new exclusions.
  • Whether the premium rose, and whether the cover is still right for you.
  • If a claim is declined, the specific reason. You can ask the insurer to reconsider, or complain to the free Insurance & Financial Services Ombudsman.

Common questions

What is an excess?

The amount you pay yourself towards a claim before the insurer pays the rest. A higher excess usually means a lower premium.

My claim was declined. What can I do?

Read the exact reason, ask the insurer to reconsider in writing, and if you're still unhappy you can complain for free to the Insurance & Financial Services Ombudsman (IFSO).

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