Home Insurance for natural disasters takes care of the unforeseen events in life.
Events like hail damage, fire, floods and many others that come out of nowhere.
Home Insurance for Natural disasters lets You sleep Like a Baby
- Building insurance covers the structure itself.
- Contents covers what is in the home.
- Personal valuables covers goods you carry around when away from home. Banks include building insurance as part of the contract when you have a bond. Other insurances are optional.
With Home Insurance for Natural disasters You can Weather any Storm
When it comes to home insurance, you must understand the extent of your cover. You don’t want to find out what you are or are not insured for when it’s too late.
While we hope for the best, we have to prepare for the worst and insurance is a good way to do this.
What Types of Home Insurance for Natural disasters Are there?
Most firms offer three different basic policies – Building, Contents and Personal valuables insurance.
The policy covers the permanent structures and fixtures on your property against loss or damage. If your geyser bursts, you can claim.
The insurance usually extends to personal liability insurance as well. If someone works on your roof and falls off, your insurance covers you if they claim against you. It also insures against a liability claim in terms of another party’s personal property.
This covers what is in the house. A lightning strike on your TV, goods that are lost, stolen, damaged or destroyed. Not covered are Immovable fixtures, like the geyser.
Personal Valuables Insurance
This is separate from the standard contents cover and includes items that you use outside your home. For example, a cell phone stolen while shopping.
It is important to know the extent of your cover. You receive a certain amount for non-specified items but this cover is low. If you want full cover for expensive items, you have to specify them and pay extra to insure them.
Must I have Insurance?
Building insurance forms part of the terms and conditions of your home loan. The bank also requires life cover as well.
You are not obliged to take the cover offered by the bank. But you will have to cede some form of building insurance.
If you do not have a bond, building insurance is optional. It is, however, highly recommended. It is quite cheap and can be a critical when something bad happens. Covering general repair costs is not such a big problem.
When you start to replace a burst geyser though, the costs mount up fast. Around R7000 at least and that’s without taking any water damage into account. If there is a fire or the house needs to be rebuilt, buildings insurance is essential.
Content and personal valuables insurance can be considered optional.
How much Cover should I Get?
When choosing the cover you need, be sure to look at the replacement cost or the overall value of the home. Building insurance policies that are tied to the bond are often less expensive. However, they often only cover the outstanding amount of the bond.
This means that the cover decreases as the bond does, leaving no extra funds if you need to rebuild.
It is better to over-insure that under-insure your home. Think about how easily you would be able to replace your home or its contents if something were to go wrong. Then decide whether or not you can afford to stay uninsured.