select
|

Insurance should be part of your financial plan

The week is Financial Planning Week, reminding us about the importance of having a financial plan in place. What we should also keep in mind is that short-term insurance forms a key part of this plan.

“Having adequate insurance means that if something unforeseen were to happen, such as a car accident or a burglary at your home, you would be able to get back on track without derailing your financial plan,” says Bertus Visser, Chief Executive of Distribution at PSG Insure.

An average financial plan includes a strict budget dictating where your money goes. “Many people would really struggle financially if they had to suddenly come up with a considerable amount of money they had not planned to need,” Visser adds. “Insurance not only gives you peace of mind but will certainly make it easier to get through tough, unexpected situations.”

However, you need to have the right cover and there are some basics that everyone should consider. “Each person will require different cover depending on the types of assets owned, but the following types of insurance should always be on your checklist,” Visser says.

House insurance

If you own a home and are paying off your bond, house insurance would be compulsory. If you aren’t required to have it, you should consider how useful it is to have adequate insurance cover against a burst geyser, a fire or against theft. For landlords in particular, house insurance provides third party liability cover. “This is useful if, for example, someone tries to claim for an injury that occurred on your property.”

Contents insurance

Contents insurance is applicable to anyone who owns anything valuable – from your television to a favourite painting or a cell phone. “Even items like your fridge, couch and clothing are important to cover. Consider how expensive it would be to replace any of these if you were to fall victim to crime, fire or a natural disaster.”

Don’t only insure a portion of your assets, but instead make sure you are 100% covered. Failing to do this runs the risk of being underinsured, which means if you need to claim, you will be proportionately paid out.

If you are renting, it’s just as important to cover your belongings. “Your landlord is not liable if your television or laptop, for example, are stolen.” 

Car insurance

Of course anyone on the road knows how easily accidents can happen, as well as how costly vehicle repairs can be. “Consider what you would do if your car was not drivable. Without insurance, how would you afford a new one; how would you get from A to B?”

While paying for insurance can be costly, it’s much cheaper than having to pay entirely for damages and accidents yourself. “Be sure to get the right amount of cover you need and factor it in to your financial plan,” Visser concludes.


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 22 Jun 2018
      The rental market in many Johannesburg suburbs has shown encouraging signs of revival this year but it remains a competitive market and landlords who best cater to their market’s needs will reap the healthiest returns.
    • 22 Jun 2018
      Home design is constantly evolving to reflect the changing needs of society. We look at some of the ways in which our use of space is changing.
    • 22 Jun 2018
      While estate agents can help the seller with correctly pricing the property and marketing a property to the right pool of potential buyers, at the end of the day it’s the impression that the property will make on buyers that counts the most.
    • 21 Jun 2018
      Anyone who’s ever been involved in a building project that’s gone wrong will appreciate the importance of adequate insurance cover in the construction industry.
    • 21 Jun 2018
      A recent news story about a blind tenant caught in a legal battle with his body corporate over letters and notices he was unable to read and consequently comply with has raised the question: what are the legal obligations for landlords with disabled tenants?
    • 21 Jun 2018
      A trend that’s taken the world by storm in recent years is that of hygge (pronounced: hue-guh), a Danish concept that is about creating intimacy, connecting with loved ones and taking pleasure in small, ordinary things.
    • 20 Jun 2018
      Buying or selling real estate isn’t as easy as it is portrayed sometimes, especially if there is a death of a party during the transaction which can make it awkward, tricky and inconvenient.
    • 20 Jun 2018
      With interest rates remaining at historic lows and banks continuing to compete for mortgage finance business, first-time buyers with funds at their disposal are currently well-placed to gain that initial foothold on the property ladder, particularly in the light of the slightly lower growth rates currently experienced in residential property values.
        
    X
    Subscribe to the MyProperty Newsletter

    Name  
    Last Name  
    Email Address  
    Email Frequency
    select
    X
    Share this Page

       
    For Sale Property
    Rental Property
    More Options
    About
    Connect with us
    FEEDBACK