13/09/2008 15:59 - (SA)
Considerations when insuring your home
Nhlanhla Ncaca
YOU need home-owners insurance if want to insure your home, the outbuildings and swimming pool against any natural disasters and fire.
When you qualify for a bond, the bank will advise you to take out an insurance policy for the duration of the bond term.
Life insurance is a policy that also comes in handy when circumstances beyond your control occur and you struggle with bond repayments.
It’s important to know the type of risk cover you need, the amount for which you are covered
and the period for which you need the insurance.
Your circumstances will determine what kind of life insurance, disability cover, dread disease cover and accident cover you need.
The right mix and ability to change your insurance terms as your circumstances change is crucial for sufficient risk protection.
Please note that every insurer is different.
Some insurers, for example, will cover more than just the wall and roof of your home.
They often cover broken windows, geysers, burst water tanks and pipes.
Malicious damage is usually also included.
The premiums you pay are calculated considering the area you live in, the construction of the roof and walls – non-standard walls and thatched roofs increase the risk and premium – the value of your home and the excess you agree to pay when you claim for any damage.
What to look out for when comparing insurance quotes:
What is included and excluded in the policy.
Identify any restrictions.
Additional benefits offered by the product or company.
The excess amount you will have to pay when claiming.
Are there any future premium increases planned.
The reputation of the company for paying claims. – www.insurance.za.org
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