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Buying a house is probably
one of the most important (and expensive)
investments any South African can make.
Homeowners and household insurance is
vital to protecting this asset against a
variety of natural – and unnatural – risks
and threats.
Know the home insurance basics
Most standard homeowners insurance policies
will provide coverage for damage to your
home (and many of the items in your home)
caused by:
• Loss through theft
• Fire and lightning damage and/or
destruction
What isn’t covered by household
insurance?
Be very careful when reading your
household insurance policy document; find
out exactly what is covered, and what is
not. Generally, many South African
insurance companies will not cover your
house and household content against acts of
terrorism, war, earthquakes, etc. It is for
this reason that you need to study your
insurance policy carefully, and negotiate
extra cover, should you feel that it is
required. This will, however, result in your
monthly insurance premium costing more than
it would have featuring “normal” cover.
How much household insurance is adequate?
The financial institution financing your
home will usually be able to give you some
sound advice and minimum requirements in
terms of how much homeowners insurance
you’ll need to sign up for to adequately
cover the structure. Find out what
rebuilding the house would cost, and insure
accordingly.
Shop around for household insurance
Get several household insurance and
homeowners insurance quotes from
several South African insurance companies
when shopping for any type of insurance.
Compare the coverage and premium rates each
insurance policy offers, and be sure to
check that you are dealing with an
established, reputable insurance company!
Always remember: the lowest price does not
always equal the best deal…
Should I get household content insurance?
In terms of insuring your household content,
simple logic applies. Generally speaking,
books, furniture and large, relatively
low-cost items won’t usually be the first
things to get stolen. Electrical appliances,
cell phones, jewelry and expensive small
items are usually the first to get stolen.
As such, you may want to take out household
insurance that cover these items if you feel
that you are at risk.
Install an alarm or security system
Installing an alarm system is a very good
way of reducing the risk of your personal
belongings getting stolen during a burglary.
Be sure to inform your insurance company
once you’ve installed the alarm system, as
security systems have a very positive effect
on monthly insurance premiums!
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