Your home is your sacred space, your sanctuary from the hustle and bustle of the world. Moreover, your home is likely to be one of your most valuable assets. In the event of your home being broken into or destroyed, you would want protection for any damage caused or loss incurred. This is where home insurance can help by offering a financial cushion in the event of a burglary or natural disaster.
It's only natural that you would want to protect your assets and your home. Of course, you can take preventative measures. These would include installing a home security system, buying a home safe for your valuables or maybe even upgrading your fencing, doors and gates to make it harder for thieves to get in. But we can never predict what will happen tomorrow, which is why home insurance is so important.
Old mutual
Naked Insurance
Absa
MiWay
Momentum
Discovery
Budget Insurance
1st for women
Santam
Outsurance
When it comes to home insurance, you're spoilt for choice! Many companies are offering different types of home insurance policies. Taking out an insurance policy on a large asset such as your home can be tricky. There are tons of information that you have to sift through and lots of small decisions you have to make to get an idea of your needs and budget.
With so many choices and decisions, it can be difficult to settle on which insurance company is right for you. That’s why we pride ourselves on being South Africa’s information hub for all things related to finance and money.
Home insurance gives you financial peace of mind in the event of a nasty surprise. Generally, home insurance protects you in the event of loss or damage. This could occur through a burglary, faulty appliance such as a burst geyser, heavy rainstorm, hail, flood, and other natural disasters. The actual coverage for loss or damage depends on the insurance company and their terms and conditions.
When looking for the right insurance company for you, there are three main types of home insurance policies you can expect to come across: home contents insurance, personal possessions insurance, and homeowner's or building insurance. What does this mean and which type of insurance do you need?
Protecting the contents of your home can be equally as important as protecting the property itself. Home contents insurance allows you to protect your household items from burglaries, floods, faulty appliances, fires, and weather damage.
To take out a home contents insurance policy, your insurer will need to perform an asset inventory assessment. Your insurance company will take note of the contents of your home, the items that can be insured and their value.
There are more household items covered under home contents insurance compared to portable possessions insurance. These items can include your furniture, the contents of your wardrobes, and your movable appliances such as your television and washing machine.
Portable possessions insurance does not cover your home itself, rather it covers personal items such as your technological devices, jewellery and other accessories, clothing, and sporting equipment.
Depending on your insurer, your cover for loss or damage may vary. Individual items could be evaluated and covered at the cost of their current value, or your insurer could provide you with a list of items that they will cover for loss or damage. If the latter occurs, you may be allowed to claim up to a specified amount in total.
This type of insurance can be particularly useful in the event of theft. Many insurers will pay out personal possessions claims much faster than other home insurance claims. Companies that offer personal possessions insurance include Discovery, 1st for women, and Dialdirect.
Homeowner's insurance is also known as building insurance and this insures the physical buildings and related structures. Homeowner's insurance prevents you from having to dip into your savings when disaster strikes. Whether it be burst pipes, a collapsed roof or major water damage from a flood, damages to your home can be extremely costly to repair.
If the structure of your home is damaged, your insurance can help by giving you a lump sum to pay for repairs and may even help you find an appropriate repairman or hardware store. This can save you the time and effort of running around to get quotes and look at reviews trying to find the best tradesman for the job.
Home insurance can seem like an unnecessary monthly expense, but it affords you and your family peace of mind knowing that your home and its contents are protected in an unforeseen calamity.
Additionally, if disaster strikes and your home is inhabitable until repairs are finished (as may be the case with fire or weather damage), your insurer may even cover the costs of emergency accommodation for you and your family.
It is important to note the difference between portable possessions insurance, home contents insurance, and building insurance. Portable possessions insurance covers movable items that are damaged out of the home, for example, if your phone is stolen while you are out for a walk. Home contents insurance covers damage to the physical contents of your home such as your furniture and home appliances. Homeowner's or building insurance covers the physical property including fixed items such as the taps, windows and doors.
Your claims process will depend on the type of policy you have and your insurer. When considering an insurance company for home insurance, be sure to ask about the claims process, payout and excess premiums. Most importantly, verify what items are covered under the insurance policy as well as what types of loss or damage is covered.
You may only be covered up to a maximum amount or there may be restrictions on what type of damage you can claim. For example, some insurance policies may not cover you for third party damage. This can help you narrow down your choices and find an insurer that suits your needs and your budget.
Most banks offer home insurance as well as companies like KingPrice, 1st for women, and Outsurance. Additionally, some home loans from these financial institutions may require you to take out homeowner’s insurance as well.
Knowledge is power and knowing what you want out of your home insurance policy can prevent you from being scammed by paying excessively high premiums or having to deal with complicated claims processes! Luckily, BudgetGist is here to help! We are South Africa’s information hub for all things related to finance and money.
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