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Home insurance – Q & A

Being a home owner comes with some really big responsibilities. First of all, your home is your main responsibility; well, just as much as all the belongings in your home. As a responsible home owner, taking care of that should be a priority. Ensuring that you are correctly covered can save you a lot in the future.

 

Choosing the right cover for you can be a tough and scary decision.

 

So, here are the basics you should always consider:

 

What is home contents insurance? This covers all the items in your house that you would take with you if you were to ever move and this includes:

  • Cover for food that deteriorates because of power failure or if your freezer breaks down.
  • Cover for loss or damage to household goods and personal possessions
  • Cover for loss or damage caused by fire, lightning, power surge, storms, malicious damage, bursting or over flowing geysers, break-ins and theft.
  • Cover for stolen washing or garden furniture.
  • Cover for your domestic employees’ or guests’ belongings (only if there is proof of damage caused by a break-in).
  • Cover in the event of you or your spouse’s death if caused by fire or break-in at your home.

What is building insurance? Covers your for accidental or environmental damage that could or might happen to the physical structure. This includes:

  •  Damage caused by animals, vehicles and falling trees.
  • Rent you lose if your tenant has to vacate the building as a result of damage by anything covered by the policy.
  • Break-in or theft – if that break-in or theft causes damage to the actual building.
  • Loss or damage caused by fire, lightning, explosion, earthquakes, the bursting or overflowing of geysers, equipment or pipes and storm or flood.
  • Malicious or intentional damage.

Home and building insurance options: This includes various options as every policy is different. The policy depends on your needs, property and criteria. These are some of the most popular options for both home and building insurance (Options may vary depending on insurance):

 

  • Earthquakes
  • Burglary/theft
  • Malicious damage
  • Power surge
  • Sea surge
  • Water/snow
  • Storm/wind
  • Hail
  • Fire
  • Subsidence and landslip
  • Explosion
  • Accidental damage
  • Lightning
  • Flood

Home and building insurance really offers a lot so it may seem simple but make sure you know what is covered.

What does home and building insurance NOT cover?

It is strongly advised that you fully understand what your home insurance does not cover as this will be policy specific.

 

When can a claim be rejected?

  • If there is damage to the property caused by roots and weeds.
  • Chipping of sanitary ware, wall or floor tiles or paving is not covered.
  • Damage caused by pets, such as soiling, scratching, tearing, denting or defacing of the property.
  • Should you run a bed and breakfast from home, the appliances in the rooms are excluded from household cover.
  • If your home was left unoccupied for a significantly long period of time.
  • If your home should suffer a power outage, things like food spoilage are not covered under a standard policy.

 

Is home and building insurance compulsory?

 

Well, if you go through a mortgage lender, they may require you to have adequate building insurance to cover your property’s structure, however, if you do not have a mortgage/bond and your property is owned outright, then no you don’t necessarily need home building or contents insurance.

 

What gets considered for your premium?

 

  • Voluntary additional excess you may choose
  • Previous claims you have made
  • Superior security protections in place
  • Value at risk
  • Location of risk
  • No-claim bonus
  • Excess applicable
  • Security measures
  • Construction of building and extent of cover

 

Here are some great companies that can help you with your home building and contents insurance:

https://usib.co.za/

https://wesureww.co.za/

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