Real Estate Investor Magazine South Africa March 2013 | Page 38

SMART MOVES

BY ANGIE REDMOND

Home Insurance

A

new house brings with it a wealth of
new responsibilities. One of these is
that you need to consider what will
happen to you, your family or your house if your
circumstances change. No matter how unlikely
this may seem, life is full of surprises, and you
need to plan for every eventuality.
The best way to make sure that you are covered
in a crisis is to have sufficient insurance in place
to help you through any difficult times.
“There are two main types of insurance that
a homeowner should have,” says Craig Young,

A Small Price To Pay For Peace of Mind
Managing Executive of Insurance at ooba,
South Africa’s biggest bond originator and
provider of insurance cover for all property
matters. “In some cases your bank will insist on
some form of cover; in others it is optional – but
in all cases it’s a good idea.”

Buildings insurance
Buildings insurance is one of the most
important policies you will purchase. It covers
the structure of your home as well as all the
permanent fixtures and fittings in it, against

damage caused as a result of unexpected events
like fire, flood and lightning. Your bank will
insist that you have such cover, but they can’t
compel you to take their insurance offering. If
you wish, you can obtain buildings insurance
cover from any accredited insurer, freeing
you up to compare costs, coverage, benefits,
reputation and service.
“Buildings insurance protects your home
from costly damage caused by unforeseen
circumstances,” says Young. “For instance, if
your geyser bursts, the insurance will cover its
replacement and any consequential loss up to a
certain limit such as the costs of home repairs
and painting.
“Your home is usually your most expensive
asset, but maintaining a home can be expensive,
and when unplanned events occur, it’s incredibly
beneficial to have this kind of insurance as a
lifeline,” says Young. “This is why banks make it
compulsory – they are safeguarding your asset.”

Bond protection insurance
Of course, when you consider buying a
property, you work out whether you can afford
the repayments – and if you’ve had your bond
approved, obviously your bank thinks so too.
But both you and your bank have to count on
you remaining employed and in good health.
“It is very important to consider what would
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March 2013 SA Real Estate Investor

www.reimag.co.za