Homeowners Insurance Cover South Africa

With today’s South African consumer market as saturated with advertising as it is, it is fairly safe to say that most South Africans do understand and accept the necessities behind any insurance policy, and home insurance is no different here.

Simply put, a home insurance policy provides financial cover for any damages or losses to your property or possessions, incurred due to theft, fire, flood, or any other natural disaster.  Indeed, if you are one of the many South African’s fortunate enough to be a homeowner, then you may already be familiar with the workings of this kind of policy.

The crucial point to note, however, is that there are different types of this kind of insurance and not all policies, or insurance providers, offer all of the coverage options that fall under the large banner of home insurance.

Homeowners insurance, then, is a type of insurance for your home or property that most homeowners may already possess.  Indeed, most, if not all, home loans, bonds and mortgages require a homeowner’s insurance policy be taken out on the property, valid for the duration of the loan, before the loan itself is approved and guaranteed.

What homeowners may not be familiar with is just exactly how homeowner’s insurance differs from other kinds of home insurance, such as household insurance.

Homeowners insurance is an insurance policy that homeowners can take out to provide financial cover for the actual buildings of your private residence themselves, including any outbuildings, such as a motor garage, granny flat, or a work shed,  as well as providing cover for property enhancing features, such as swimming pools.  A policy of this nature will offer you, as the legal homeowner, a payout equivalent to the insured value of the property that has been damaged due to fire, flood, or any other natural disaster such as storm or lightning damage or even an earthquake.

Coverage for vandalism is also usually included, as are other minor problems such as broken windows, burst water pipes, leaking geysers and so on, but it is recommended that you confirm the inclusion of these ‘extras’ with your insurance provider, just so that you, as the homeowner, are fully apprised as to the extent of the insurance policy coverage.

The premiums for a homeowners insurance policy, like those for most insurance policies, are calculated through the consideration of a number of different factors, including the area in which the house is situated, the condition of the house at the time of insuring, the total value of the home itself, and the amount of excess you are willing to pay when claiming.

Most short-term insurance providers that offer home insurance packages, from the likes of SANTAM and OUTsurance, to the various banking and other financial institutions, like ABSA and Old Mutual, do also offer comprehensive homeowners insurance policies. Thus it is imperative, when looking to take out a homeowners insurance policy, that you compare the various offers available, to find the homeowners insurance policy that is best suited to your property needs and, of course, your current financial position.