Lightning doesn’t strike twice, does it?

Lightning doesn’t strike twice, does it?

Last updated on 13th December, 2017 at 10:03 am

Insuring everything inside your house is a no-brainer. But don’t forget about the part that keeps you safe, the roof over your head. We look into the importance of building insurance.

The saying “safe as houses” is often misleading – ask any homeowner who has had to cough up large sums of money for repair work to their houses in the event of a storm or a fire! But you can shield yourself against these unexpected and unwanted expenses by taking out building insurance. As the name suggests, building insurance provides cover for any damage to the buildings, including walls, paving, outbuildings, car ports and swimming pools in the event of a fire, flood, earthquake, lightning, explosion or any other major disaster.

Keep your building insurance

When you take out a mortgage/bond, the financial institution that provides the home loan compels you to take out building insurance. If you’re fortunate enough to pay off your mortgage bond faster than the contractual period of the loan, you may be tempted to cancel the building insurance you took out with your bond. This is unwise. Ask yourself if you have, say, R50 000 or more at your disposal to replace something in the event of a disaster. Repairs to buildings often amount to thousands of rand – money that you may not have readily available. In exchange for a monthly premium of approximately R300 (just an estimate) for a three-bedroomed house, the insurer will carry the risk on your behalf and pay for the replacement and/or repair work.

Go comprehensive

Most insurers offer comprehensive cover that also includes fixing or replacing the windows, gates and fences to your house if these are damaged in the event of a burglary. Wear and tear and damage to geysers, water pipes and other electronic equipment that are connected to your house are often included in the cover at an additional premium, while some insurance policies also provide subsidence and landslip cover when the land on which the property is situated caves in, or moves upward, downward, or sideways. As with all insurance policies, make sure you understand the terms and exclusions of the contract, read the fine print and shop around for the best rate.

By Liesl Peyper

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