Homeowners get three main types of insurance to choose from. These are Building Insurance, Household Contents Insurance and lastly, Personal Valuables Insurance.
The first of these may go by many names, and that's what we'll be talking about today. Call it Building Insurance, Home Insurance or Homeowners Insurance; they’re pretty much one and the same thing, and possibly the most important type of insurance you'll ever get.
As the saying goes; home is where the heart is, and covering your greatest asset is important.
Few people could afford to pay a massive lump sum on home repairs in the event of catastrophic damage, which could be caused by anything from fire, flooding, lightning, heavy winds or an earthquake.
Building Insurance ensures that the physical structure of your home or business is covered against these types of risk.
From flooding due to a huge storm, a burst water pipe or even a geyser, water damage is one of the most frequent occurrences to affect a home. Fire is right behind it, from a raging wildfire to an electrical fault in your home. Lightning is, likewise, one of the top reasons for claim submission in South Africa, as it could have a huge impact on the electrical integrity of the building.
It isn’t compulsory to own such a policy in South Africa, except for when homeowners find themselves in need of a home loan. In such a case, most banks consider it an obligatory requirement.