INSURANCE FOR YOUR PROPERTY - WHICH ONE, WHEN AND WHY?
Category Advice
There's one compulsory property-related insurance policy when you have a home loan, and another which is a wonderful safety net when the proverbial curved ball hits.
Insurance is a complex hot topic, some believing wholeheartedly in the benefits, others resistant...generally until they need it. It's essentially a grudge purchase, but when it comes to your own property, when things go wrong, it's usually a costly exercise. If you aren't a habitual saver-for-a-rainy-day kind of person, insurance can be your best friend.
What is Building Insurance?
When you apply for a home loan, the approval of your loan often depends on you getting a type of insurance known as Buildings Insurance. This policy is there to help you and the bank in case something unforeseen - little or large - happens to your house, such as a fire, extreme weather conditions, or your geyser bursts.
Bond originator ooba, has an insurance wing, oobainsure, who offered down-to-earth advice that's easy for those averse to the scourge of small print. That doesn't mean you shouldn't read it - many have not done so, at their peril...but this gives a great overview.
You are not obliged to take the Building Insurance offered by the bank, which is providing you with a home loan, but it is compulsory for you to prove to that bank that you have building insurance cover in place. Building Insurance should not be confused with Householders Insurance - the former covers the exterior and structure, the latter, the interior goods such as furniture and theft thereof.
Building Insurance (sometimes called a Homeowner's Insurance) typically covers damage to the physical structure of a building so, while it may seem like an extra unnecessary cost, there are significant benefits to this kind of cover, including:
Property Damage Protection: Building insurance can provide financial protection against a wide range of risks, including natural disasters (like earthquakes, floods, and storms), fires, vandalism, and accidents. This coverage ensures that if your building sustains damage due to covered perils, the insurance company will help cover the repair or rebuilding costs.
Greater Sense of Financial Security: Your building is likely one of your most valuable assets. Building Insurance helps provide financial security by mitigating the financial impact of unexpected damages. Instead of having to pay for repairs or reconstruction out of your own pocket, you can rely on your insurance coverage to handle these costs, up to the policy limits.
Complete Peace of Mind: Knowing your property is protected against various risks can provide peace of mind. You won't have to worry as much about unforeseen events causing extensive damage and financial strain.
At oobainsure, your buildings insurance policy can be customised to fit your specific needs. Some of what is covered includes: geyser malfunctions; broken windows; electrical problems; and damage to electrical gate motors or your garden, caused by an unforeseen event.
What is Bond Protector Cover?
It is a type of insurance policy designed to provide financial protection to homeowners and their families in the event of the homeowner's death, disability, or critical illness. The primary benefit of this kind of cover is to ensure your home loan is paid off. This provides a safety net for your loved ones, ensuring they are not burdened with mortgage payments during a difficult time.
Bond Protector Cover is particularly important if you have dependents - spouse, children, or other family members - as the insurance payout can help them maintain their living standard and stay in their home even if you're no longer around to contribute financially.
With oobainsure's Bond Protector, if you lose your job due to retrenchment, their policy will cover your monthly loan repayments for a period of up to 12 months.
And unlike other insurance cover, you do not need a medical exam to qualify for Bond Protector Cover.
Contact: oobainsure
https://www.ooba.co.za/insurance/
021 481 7300
Author: Myles Wakefield
