Home Insurance: How does it work?
Home insurance policies are long, complicated and written in legalese. But it can really pay to know what’s in yours and how it works.
With all the expenses that come with owning a home, it’s reasonable to wonder if homeowners insurance is just another seemingly useless expense. No, it is not useless – in fact, homeowners insurance is essential.
Damage and loss to your home can occur in many ways – from fire, flooding and natural disasters like storms, to damage caused by thieves trying to gain entry to your home. Most homeowner’s insurance policies in South Africa will cover the structure of your home and its outbuildings.
Not only will a good policy save you money in the event that something happens to your home or belongings, an insurance company can also help you with other matters, like making your home more resistant to natural disasters.
Home Insurance can cover you against the following damages:
• Fire, lightning and explosions.
• Loss or damage caused by deliberate or willful acts.
• Burst geysers and resultant damage.
• Natural Disasters including storm, wind, flood, hail, snow or earthquake damage.
• Loss or damage caused by faulty water systems, including burst, leaking or overflowing geysers, water supply tanks, cisterns and water pipes.
• Theft or attempted theft where forcible and violent entry to (or exit from) your property causes damage to the premises.
• Impact by animals, vehicles, falling trees or parts of trees; aircraft or articles dropped from above.
• Breakage or collapse of fixed radio or television aerials, satellite dishes or masts.
• Erosion and / or Subsidence.
Mistakes people make when getting a home insurance:
The most common mistake that everyone does when taking out any policy is not reading the insurance policies. Most people don’t read a policy until they have had a claim denied and by then it is too late, because there is nothing that they can do about it.
Make sure you read any policy you take out – knowing the terms and conditions could help you.