Insurance

When you buy your dream home, it comes with responsibilities that you must prioritise.

One of these is insurance. As a homeowner, you should have two types of insurance: homeowner's insurance and home contents insurance.

For both insurance types, keep the following in mind:

• It is your responsibility to arrange your insurance.
• If you do not pay your monthly premium, your insurance provider will cancel your cover.
• If you need to make a claim, you must contact your insurer directly.
• Also, be aware of the excess fee that insurers impose when you lodge a claim.

Homeowners' insurance and life cover

You must ensure your house is covered by homeowner's cover (HOC), and if you have a bond, you should also have life cover to ensure your bond can still be paid if you pass away. This insurance is generally provided by the bank that approved your bond.

Homeowner's insurance specifically covers the following:

• Your home's physical building structure.
• Outbuildings on the property.
• Permanent fixtures and fittings.
• Geysers.
• Boundary walls.
• Garage doors.
• Motors for electric gates and garages.
• Gate posts, gates, and fences.
• Paved, bricked, concrete, asphalt, or stone-surfaced areas.

You will be insured for:

• Fire damage due to electrical short circuits or lightning strikes.
• Damage caused by natural disasters.
• Water damage due to a leaking or burst geyser.
• Structural damage caused by burglary.

Note that only bank-approved and NHBRC-registered contractors listed on your insurance's panel can be appointed to carry out repairs on your property.

Home content insurance

Along with your house's physical structure, you also want to ensure that all your possessions inside your home are insured. This can be arranged through any major insurance provider or broker. You should ensure your household contents are insured for their accurate monetary value. It is very easy to undervalue the replacement cost of your possessions, so a thorough audit of what you have and how much it would cost to replace will help ensure you have sufficient insurance in case of theft or fire.

What can be insured?

With home contents insurance, you can either insure your house's belongings for a fixed amount (for example, R500 000) or insure specific items for their value (for example, a R40 000 computer).

Home content insurance covers some of the following items:

• Technology
• Furniture
• Appliances
• Collectables
• Artwork
• Jewellery
• Clothing
• Personal effects

Always read your insurance policies carefully and follow their specified requirements to avoid affecting any future insurance claims.

How do I claim?

Contact your insurance provider directly if you need to file a claim.