Homeowners insurance is the kind of thing you hope you never have to use, but if you need it, it’s invaluable.
Whether it pays for natural disasters (such as flooding or lightning damage) or man-made problems (such as fire, vandalism or theft), homeowners insurance can get you back on your feet and give you back a normal life after your house or possessions are damaged or lost.
Before anything happens to your house, it’s a good idea to videotape your possessions so that, in case of catastrophe, you’ll already have records of what you own, which will simplify the process of filing your claim.
Also, it’s worth reading through your policy, as there could be expenses that you may not realise you could get back money for, such as hiring a company to remove mould. Check what your policy covers and what it excludes. Although you aren’t legally required to have homeowners insurance, if you want to borrow money from a mortgage bank, your lender will probably insist on it.
In addition, if you own a sectional title or co-op, the tenants’ association might require you to have insurance coverage, since if something happens to your place, it could affect everyone else’s. Even if you maintain your house and you’re not in the path of natural disasters like hurricanes or tornados, homeowners insurance comes in handy for unexpected scenarios.
For example, if you throw a goodbye party for a friend and a guest trips inside your property and hurts himself, he could hold the owner of the property (you) responsible. Homeowners insurance should pay for the injured party’s medical expenses and protect you against horrible legal problems. House insurance or homeowners provides protection against risks to your property.
Your property consists of the actual buildings of your private residents, including any outbuildings and swimming pools. The risks to your house may include fire, lightning, wind, flood, earthquake, theft, vandalism and other risks specified in your house insurance policy.
If you have a bond, it is compulsory to have house insurance for the duration of the term. House insurance and home contents are not mutually exclusive and household insurance policies often have cover for both the buildings and their contents. However, the type of house or household cover depends largely on the replacement value of the building or your possessions.
Home insurance gives you peace of mind knowing you have the right cover to protect your household. You insurance company can do a thorough analysis of your household insurance needs to provide you with the best home contents insurance policy at affordable prices.
The basic goal behind buying insurance is to make you financially whole following a loss. You agree to pay a (relatively) small fee to an insurance company today, causing a small but certain loss to you now, in exchange for a guarantee from the insurance company that it will bear the burden of a large but uncertain loss in the future.
Let’s say that you have a house that you own, free and clear – with no insurance. As long as you continue to pay your property taxes, you have every right to enjoy the use of that house for as long as you like, as guaranteed by law. You may live there, rent it out, leave it vacant or even sell it if you like. However, if that giant tree in the back yard falls on your house, causing severe damage, it is still up to you to cover the cost to repair the house. This is the basic reason to carry property insurance, which would have paid for your property to be fixed or replaced.
In the end, insurance will give you peace of mind, and one cannot put a price on the safety and wellbeing of loved ones.
