Why do you need home insurance coverage?
You need to be able to repair or replace the property if it gets damaged or destroyed by a covered event. In order to protect your own interests you should have a comprehensive homeowners’ policy that goes above what a lender requires.
5 Facts you need to know about Home Insurance Coverage:
Your credit rating has an effect
Your credit rating is used by insurance providers as a tool to measure how likely you are to pay your premiums on time monthly. In general, individuals who have good credit records are regarded as low-risk and they will be charged lower premiums.
Not everything is covered
Having Home Insurance doesn’t guarantee that everything will be covered. You need to make sure that you understand the exclusions of your policy. In South Africa, Home insurance is typically separated into buildings insurance, home contents insurance as well as personal possessions insurance. The good thing is that you are able to combine these insurance types into a single policy with one insurance provider.
You can ask about discounts
You are under no obligation to accept the insurance quote that you are given by your insurance provider. You are allowed to ask about various discounts that are available.
You need to update your policy regularly
Once a year when it’s time for policy renewal, you can compare among different insurance quotes to make sure that you are getting the right kind of cover for your needs. You need to take the time to thoroughly assess your needs and whether or not your insurance policy meets these needs.
Where you live affects your insurance quote
The area in which you live has a big impact on your insurance quote. If your home is in an area that is prone to earthquakes for instance your premiums will be higher. By introducing some preventive measures however, you can influence this premium.