select
|

Insurance tips for new homeowners

Buying a home for the first time can be very exciting, but this new asset also comes with additional responsibilities such as homeowner’s insurance.

Nazeer Hoosen, executive: short term insurance at PPS, says it is imperative for anyone buying their first home to ensure that they have a proper insurance policy in place to protect their newly acquired asset.

“After going through the process of saving up for a deposit, finding the perfect house and getting a mortgage loan approved, new homeowners must ensure they put the same effort into finding the appropriate insurance policy for their specific needs.

“Many people rent flats or share houses for most of their early working years, so they might have some knowledge about home contents insurance, but homeowners insurance may be completely new to them.”

Hoosen says that homeowners insurance can be divided into two parts: building insurance and home contents insurance, with the former covering the construction of the home like the walls, windows or a fitted kitchen.

“It is vital that consumers have building insurance as these structures need to be covered in the case of damage caused by events such as a fire, flood or storm. The policy will also cover theft and malicious damage to fixtures and fittings.”

Contents insurance will cover the belongings inside the home such as appliances, furniture and electronics.

“You can claim for contents insurance in case of fire and floods as well, but contents insurance will also cover your belongings in the unfortunate event of damage or theft. For these reasons it is strongly advised that homeowners have both building and contents as part of an overall home insurance policy.”

If you already have contents insurance in place for your belongings, it may be advisable to take out building insurance with the same provider as many insurers offer discounted premiums when the value of the policy increases, says Hoosen.

“In some instances, you will be offered insurance from the bank that granted your home loan, but it is important to consider other insurance providers and policy options. Although it is good to speak to relatives and friends about their experience with their insurance providers it is still advisable to speak to a broker to get optimal insurance at the best price,” says Hoosen.

“It is also imperative that a proper assessment is carried out before the insurance policy is finalised to ensure that you are not underinsured. If at the claims stage it is found that the home and contents are not sufficiently insured for the replacement value, you will be left with the financial burden of having to pay the difference between the sum insured that is reflected in the policy and the actual replacement value.”

Lastly, Hoosen says that it is essential to completely understand your home insurance policy before you sign the contract.

“Ask the insurance broker to explain any complex clauses and jargon to ensure complete understanding of the policy. This will also ensure that you won’t face insurance claim repudiations due to not understanding what is covered under your chosen policy and what is not.”


  Comment on this Article

  Please login to post comments

Post to my facebook wall
  
2000
Characters remaining


    Latest Property News
    • 17 Nov 2017
      FWJK has announced the launch of its latest residential brand, the Lil’ Apple, which will be launched simultaneously in two developments in Cape Town and Umhlanga totaling 600 apartments. The Lil’ Apple is set to be a brand of FWJK’s New York style apartments which will be rolled out nationally.
    • 17 Nov 2017
      It’s been a tumultuous year on many fronts, with socio-political uncertainty setting the tone for much of South Africa’s economic activity yet despite this and seemingly counter-intuitively, the residential property market has held up well.
    • 17 Nov 2017
      The EAAB (the Estate Agency Affairs Board) recently claimed that around 50,000 illegal estate agents could currently be operating illegally.
    • 16 Nov 2017
      Penthouses are synonymous with New York – characterised by high-rise living that is decidedly luxurious and spacious. While exclusivity comes at a price, you can still create a “penthouse” look and feel in your existing apartment or even the upstairs bedroom of a double storey house with some clever design changes and styling touches.
    • 16 Nov 2017
      The area has long been popular with kite surfers and, with escalating property prices in Cape Town itself, is increasingly in demand with home owners who work in town, but are looking to invest in more affordable properties.
    • 16 Nov 2017
      Cape Town’s popularity as a world-class tourist destination has resulted in a spike in the number of homes available for holiday lets and fuelled investor demand for sectional title units with short term rental potential.
    • 15 Nov 2017
      Sappi, one of South Africa’s oldest global companies and a leading global supplier of sustainable woodfibre products, has moved its global and regional headquarters to a new site on the corner of Oxford and 14th Avenue in Rosebank.
    • 15 Nov 2017
      There’s an old saying in real estate that you should seek to make a profit when you buy, not only when you sell – and a large part of succeeding at that endeavour is buying a home in an area with desirable features that will enhance the resale value of your property.
        
    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