Buying a home is one of the biggest purchases you may make in your lifetime. Buying a house means that you have an asset in your name and this also comes with a range of risks. You need to protect your home against possible risks that may come up such as robbery, damaged caused by fire or even a burst geyser. This is why insurance for your home is important.
This type of cover is usually a package policy. This usually means that it may cover both damage to your property and any legal responsibility you may face for any injuries and property damage you or members of your family cause to other people. It also generally covers the actual structure of the home.
In South Africa it is commonly known as Buildings Insurance. This type of insurance protects you financially against loss or damage to the actual physical structure of your home.
Recent statistics published by the Fire Protection Association of South Africa show that almost 10 000 fires were reported to have occurred in private homes in one year alone. This amounted to losses of more than R573 billion. This goes to show that as a home owner you need to take the necessary precautions to make sure that you are covered financially.
When you are buying a new home, you have the choice of buying insurance for your home from the financial institution or bank you are using to finance your home, or you can opt for an insurer of your choice.
One way of reducing your premium may be by insuring your home with the same insurance company you use for your car.
Reasons for getting insurance for your home:
- A good policy will save you money in the event that something happens to your home or belongings
- This insurance will cover the actual building- structure and permanent fixtures – the bricks and mortar.