Most people are looking for ways to reduce their spending. But, before you cut back on insurance, make sure that the immediate saving does not result in your being out of pocket when you claim, Bertus Visser, the chief executive of distribution at PSG Insure, says.

Here are three things to consider:

• You do not have to insure jewellery under an all-risks policy if you do not wear the item at all times. It may be cheaper to include some items on your household contents insurance. A good example is a tablet – you might use it only at home, so it doesn’t have to be covered when you are out and about,” Visser says.

If, however, the items are particularly valuable and you are unsure whether they should be specified (listed as a separate insured item), check with your financial adviser or insurer before including them in your general contents cover.

• Your premiums will be unnecessarily high if you over-insure your household contents. But remember that if you under-insure, a claim may be repudiated, or the insurer will pay out only proportionately, Visser says. For example, if the actual value of your contents is closer to R1 million and you have insured them for only R250 000, your insurer may pay out 25 percent of your claim. You must obtain an accurate valuation of what it would cost to replace everything in your home.

You should also keep in mind how the exchange rate will affect the replacement value of imported household items, he says.

• Consider adjusting the sum insured on your car insurance periodically. “As cars devalue, you could effectively have your premiums reduced if you keep your sum-insured value up to date,” Visser says.