If you do have problems in your insurance policy or you find out that a clause in your policy does not meet your requirements. It is important to notify the insurance company and arrange an appointment with them. It is important to communicate your concern with the insurer. If not, you will be stuck with an insurance policy that does not fit your needs and you may bear a significant financial losses if the unexpected situation occurs and your policy does not fit with your requirements.

For example, you may have insured your house. You decide to extend your house and add an upper storey. Your insurance policy covered your original property (the building stated in the clause without the extra storey on it). Four years later, a small fire started in the kitchen and destroyed the kitchen and the upper ceiling. The fire also destroyed the spare bedroom that was directly located above the kitchen.

When you claim your insurance, you will only receive repairs to the kitchen and the ceiling. The rest of the damage cause by the fire was not covered by the insurance policy; therefore, you will have to pay for the remaining repairs yourself. This will cost way more than your premium.

Another example carrying on from the previous example. If you had the insurance policy that covered the original house and you decide to add an upper storey. The upper storey construction was carried out by one of your mates that was a builder. There was no building consent to carry out the modifications to your home. When the fire in the kitchen occured and you applied for insurance cover; a clause in the insurance contract specifically states that any modification to your home or property that is not done with building consent will void this contract... You will receive no insurance at all!

This is why it is very important to stick to the original policy and abide by those policies. Or, talk to the insurance advisor and request a revised insurance policy that takes into account your building modification that has been given building consent.