What is House Insurance?
House insurance is designed to make sure that your home contents are covered. The cover will also cover damage caused by fire, subsidence, theft and various acts of nature. Some insurance providers may provide cover for food that deteriorates because of power failure or cover for stolen washing. With this type of insurance you get protection for your possessions as well as the building.
What should your House Insurance quote cover?
House Insurance can be classified as three main types of insurance cover:
Home Contents: This is cover for House contents and you are insured for theft, loss and damage.
Buildings Insurance: Also known as Homeowners Insurance, this cover is for any structural damage to the building and permanent fixtures within the house. You get cover for damage caused by floods or even explosions, etc.
Portable Possessions Insurance: This is cover for loss or damage to sunglasses, cell phones, laptops and clothing.
Make sure that the cover you get is enough to enable you to replace lost, damaged or stolen goods.
Make sure that you have updated the value of your home and household contents regularly. Aim to do this every 6 months.
Make sure that your policy keeps track with inflation.
Calculations should be based on replacement value, not market value. So work out how much it will cost to replace goods presently, not based on what they were worth when you bought them. You should also avoid over-estimating replacement values as this will result in you basically throwing money away every month. In the event that you have to claim, you will only be paid out for the true value of the loss.
Remember that Household Contents refers to all the possessions that are in your home.
In South Africa, most insurance companies provide cover for water and geyser damage while all insurers provide cover for fire damage.
When you get your House Insurance quote, consider combining this insurance with your motor insurance. More companies are giving clients more value for their money by offering multi-policy options.
