How to Save Money on Insurance
Tip #1 – Don’t pay for cover you don’t need.
Seems obvious that you wouldn’t want to pay for something you don’t need, however, when last did you check your Adventist site’s Certificate of Cover?
You may find items of property, contents or extra risks that the site no longer owns because the property was sold, stolen, replaced or lost. Or perhaps low-value items are still listed which no longer need cover.
Talk to RMS at any time of the year to make alterations to your property certificate.
Tip #2 – Don’t be tempted to claim more than you deserve.
If you’re in the process of a claim for a covered loss event, especially one that caused widespread damage, it can be tempting to claim a few extra items that weren’t necessarily damaged by the event.
Not only does the practice not sit well with our values as a Christian organisation, there’s a greater cost that we all pay for…including the Adventist church.
It is called ‘social inflation’.
When insurers are setting their prices and terms for a new period they factor in the total value of claims from the previous year.
In recent years, we’ve endured sharp increases in premiums, increased deductibles (excess) and reductions in what insurers are willing to cover – this is thanks to several catastrophic weather events that are clearly out of our control. However, we can control what we actually claim.
While claiming ‘a little extra’ might result in a short-term financial bonus for your site, long-term it ends up hitting the ‘hip pockets’ of all of us, including your local churches struggling to make ends meet – that impacts ministry and mission.
Tip #3 – Avoid ‘moral hazard’.
A moral hazard occurs when someone, or an organisation, with insurance engages in risky behaviour, or fails to act in good faith, because they assume that if something happens their insurance will cover the cost anyway.
An example of a moral hazard would be knowing that a roof is in need of some maintenance, maybe a couple of tiles need replacing, or there is a blocked downpipe but instead of taking due care to prevent a potential loss, the site avoids rectifying the issue until the next major weather event to make a claim for damage to the roof and any contents.
We hate being negative, but anyone who takes a cavalier attitude to real hazards because “insurance will fix it” should not be shocked by their premium the following year…or having a claim denied. Refer to tip #2 as to why.
Which leads us to tip #4…
Tip #4 – Keep property secure and well-maintained.
It is really simple: Adventist sites that take deliberate steps to prevent loss enjoy less claims, less time dealing with insurance and more time engaged in ministry and fulfilling mission.
We’ve seen time and again the full quantum of a loss that could have been prevented. Unnecessary and avoidable loss disrupts ministry, impacts mission, and ends up costing you hours in dealing with insurance paperwork, emails and restoration work – all of which could have been greatly reduced or prevented by spending a little on building resilience.
You can build resilience into your Adventist site by setting aside funds for security measures, fire detection systems, electrical safety, hazard reduction and site maintenance. While site maintenance is the financial responsibility of an Adventist site, RMS can help co-fund genuine risk and safety projects. By taking a proactive approach to risks at your site you will safeguard your mission and ministry, as well as contribute to long-term cost savings for the whole Adventist organisation.
In summary, immediate savings can be realised by checking what is listed on your property certificate and removing items that don’t need cover. Big picture, by claiming only what you truly deserve, being careful and proactive in rectifying hazards, and keeping a well-maintained and secure site will bring long-term cost benefits for you and your Adventist site.
Risk Management Service exists exclusively for the Seventh-day Adventist organisation in Australia, New Zealand and the Pacific Islands.
We are Adventists, for Adventists.
Let’s keep working together to protect ministry, mission and each other.