LEGAL MATTERS
IMAGE BY NATTANAN KANCHANAPRAT FROM PIXABAY
fixtures , such as solar panels and aerial and satellite devices . Further to this , it takes the type of wall and roof construction and the square meterage of the property , to calculate the replacement value . Most insurers offer a tool called a replacement calculator to help guide you in calculating the full replacement value . It is important that the sum insured on the policy is equal to the full replacement value , this prevents financial distress , as in the event of under insurance this will adversely affect you at the time of a claim .
It is also important to understand what perils are covered by the insurance policy , as well as benefits the policy provides . Most insurers have the same basic insured perils on a homeowner ’ s insurance policy , but some may have additional benefits that may be of value to have . It is also important to read your policy schedule which provides you with the excess structure . The excess is the first amount payable to the insurer in the event of a claim and differs in the market .
Is having property / homeowner ’ s insurance an important part of homeownership , if so why ? A home is the greatest and most precious asset a person possesses and a total loss of your property due to a fire or severe damage which may be caused by storms for example , could leave you in financial distress and unable to continue to live in your property . Homeowner ’ s insurance is therefore extremely important and very affordable in terms of the cover provided , giving you peace of mind in the event of an unfortunate loss .
It is important that you review your homeowner ’ s insurance on at least an annual basis to make sure you are adequately insured . Many homeowners ’ will affect improvements to their homes ( excludes on-going maintenance ), and we emphasise the need for you to reassess your homeowner ’ s insurance cover when you effect such improvements / alterations .
Homeowner ’ s insurance is important and provides financial protection , in the unfortunate event of a loss , which affects your property , especially when you may not have surplus funds to rebuild your property .
If your home is mortgaged , the lender will require that you have home-owners insurance cover and that you cede this to them as this provides them with security in the event of damage to your home . It is however your responsibility to ensure that the insurance policy you have taken out provides adequate cover , the cover that the policy provides is comprehensive and that the insurance premiums are up to date .
In addition to financial protection for the entire property , when damages occur to parts of your home , you can register a claim and have the repairs effected , without allowing for further damage , whilst you wait for available funds to repair .
Your homeowner ’ s insurance also provides cover for alternative accommodation for you and your family , in the event your home is damaged and is uninhabitable .
If you have a tenant renting your property , homeowner ’ s insurance will also cover you for the loss of rent , from a tenant not being able to reside in the home , in the event of damage to the property .
About the author : Natasha Osman is Bancassurance : Head of HOC ( Homeowner ’ s Insurance Cover ) at Absa Retail & Business Banking . Absa Bank Limited is a member bank of The Banking Association South Africa .
www . saaffordablehousing . co . za MARCH - APRIL 2021 17