03/02/2026
Examples of Material Changes
>Property Insurance
Structural changes: renovations, extensions, or additional buildings.
Change of occupancy: renting out a property that was previously owner-occupied.
Alteration of use: turning a residential home into a home-based business.
Significant increase in contents: adding high-value items like jewelry, art, or electronics.
>Motor Insurance
Change in vehicle usage: from personal use to commercial or delivery purposes.
Modifications that affect performance or safety: turbo-charging, lowered suspension, or other aftermarket modifications.
Change in main driver or garaging location.
>Liability Insurance
Increase in exposure: higher turnover, additional employees, or new business activities.
Changes to operational risks: adding new products or services that carry liability.
>General Considerations
Any changes in the insured’s circumstances that affect risk perception.
Changes in legal or regulatory obligations that affect coverage.
Why Notification Is Critical
Policyholder: Must promptly inform the broker or insurer of any material change in risk. Delays or omissions can compromise coverage.
Broker: Must ensure the insurer is informed and may advise the policyholder if a change is likely material. Brokers should document all communications to protect both parties.
Practical Tips
Review your insurance policies regularly and before making significant changes to property, vehicles, or business operations.
Notify your broker immediately if unsure whether a change is material.
Keep records of all communications, including emails and letters confirming changes.
Consider a policy review when adding high-value items, renovating, or expanding your business.
Material changes in risk can significantly affect the validity of your insurance cover. Open communication with your broker and prompt disclosure to your insurer are essential to maintain uninterrupted protection and ensure claims are honoured.
