Sherry Sibeko, Executive Head for Personal Lines at Miway

Well done, but don’t forget to update your insurance too!

For many South Africans, the December break offers something that the rest of the year rarely does: the time and headspace to tackle projects that have been put off for months. From upgrading kitchens and installing solar power to improving home security or enhancing vehicles. The end-of-year pause frequently becomes a period of practical upgrades.

While these improvements can enhance comfort, safety and long-term value, they can also have unintended consequences if insurance cover is not updated accordingly. Sherry Sibeko, Executive Head for Personal Lines at Miway, says that policyholders often underestimate how even seemingly modest changes can affect their risk profile.

“Many home upgrades alter a property’s replacement value or exposure to risk. Extensions, renovations and new kitchens increase rebuilding costs, while installations such as solar panels, inverters and batteries introduce high-value components that may not automatically be covered under an existing policy,” she says. “Security upgrades, although positive from a risk perspective, also need to be declared to ensure they are accurately reflected on the policy.”

Household purchases made over the festive period can create similar gaps. Large appliances, electronics and smart home technology add to the total value of household contents. If these items are not disclosed, the sum insured may no longer be sufficient, leaving homeowners underinsured in the event of theft, fire or other losses.

Sibeko notes that underinsurance remains one of the most common issues insurers encounter when claims are submitted early in the new year. “When a home’s insured value no longer matches its true replacement cost, claims may be settled proportionally, meaning policyholders receive less than expected at precisely the moment they need support most.”

Vehicle upgrades present another area where consumers can unintentionally compromise their cover. “December is often when motorists invest in improvements such as new rims, tyres, sound systems, tracking devices or advanced safety and tech features,” says Sibeko. “While these enhancements may improve performance or security, they can also increase a vehicle’s value or change the nature of the insured risk.”

If modifications are not disclosed, certain components may be excluded from cover, or claims related to those changes could be rejected. In some cases, undeclared alterations can even invalidate sections of a policy. This is particularly relevant for cosmetic changes or custom parts, which are not always covered as standard.

For Miway, the start of the new year is a critical moment for policyholders to pause and review what has changed. Sibeko says January should be viewed as a reset point, not only for personal goals but also for financial protection. “Updating policy details ensures that cover keeps pace with real-world changes and that there are no surprises when a claim is submitted.”

Importantly, she notes that informing an insurer does not necessarily mean higher premiums. “In some cases, improvements such as enhanced security measures can positively influence risk assessments. What matters most is accuracy. Insurers rely on up-to-date information to price risk correctly and to honour claims efficiently.”

As Sibeko concludes, insurance is most effective when it reflects reality. “Taking a few minutes at the start of the year to update policy details can prevent financial strain later, ensuring that improvements made during the festive break deliver long-term value rather than unexpected risk.”