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Category:
Insurance
News /
Short Term
Insurance /
Homeowners
Homeowner's Insurance Cover
With today’s South African consumer market as saturated with
advertising as it is, it is fairly safe to say that most South
Africans do understand and accept the necessities behind any
insurance policy, and home insurance is no different here.
Simply put, a home insurance policy provides financial cover for any
damages or losses to your property or possessions, incurred due to
theft, fire, flood, or any other natural disaster. Indeed, if you
are one of the many South African’s fortunate enough to be a
homeowner, then you may already be familiar with the workings of
this kind of policy.
The crucial point to note, however, is that there are different
types of this kind of insurance and not all policies, or insurance
providers, offer all of the coverage options that fall under the
large banner of home insurance.
Homeowner’s insurance, then, is a type of insurance for your home or
property that most homeowner’s may already possess. Indeed, most,
if not all, home loans, bonds and mortgages require a homeowner’s
insurance policy be taken out on the property, valid for the
duration of the loan, before the loan itself is approved and
guaranteed.
What homeowners may not be familiar with is just exactly how
homeowner’s insurance differs from other kinds of home insurance,
such as household insurance.
Homeowner’s insurance is an insurance policy that homeowners can
take out to provide financial cover
for the actual buildings of your private residence themselves,
including any outbuildings, such as a motor garage, granny flat, or
a work shed, as well as providing cover for property enhancing
features, such as swimming pools. A policy of this nature will
offer you, as the legal homeowner, a payout equivalent to the
insured value of the property that has been damaged due to fire,
flood, or any other natural disaster such as storm or lightning
damage or even an earthquake.
Coverage for vandalism is also usually included, as are other minor
problems such as broken windows, burst water pipes, leaking geysers
and so on, but it is recommended that you confirm the inclusion of
these ‘extras’ with your insurance provider, just so that you, as
the homeowner, are fully apprised as to the extent of the insurance
policy coverage.
The premiums for a homeowner’s insurance policy, like those for most
insurance policies, are calculated through the consideration of a
number of different factors, including the area in which the house
is situated, the condition of the house at the time of insuring, the
total value of the home itself, and the amount of excess you are
willing to pay when claiming.
Most short-term insurance providers that offer home insurance
packages, from the likes of SANTAM and OUTsurance, to the various
banking and other financial institutions, like ABSA and Old Mutual,
do also offer comprehensive homeowner’s insurance policies. Thus it
is imperative, when looking to take out a homeowner’s insurance
policy, that you compare the various offers available, to find the
homeowner’s insurance policy that is best suited to your property
needs and, of course, your current financial position.
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