Why do you need home insurance?
Owning a house is a great investment. This is why you need to make sure that you protect your investment against possible risk factors such as theft, water damage caused by a burst geyser or even damage caused to your house by natural disasters or weather factors such as hail.
By getting home insurance you are able to protect yourself from potential financial ruin caused by repairing damaged goods or having to replace stolen items of value.
If you have a home loan with the bank, the bank will require that you have Home Owners’ Comprehensive insurance at the time you take out a home loan.
What Home insurance generally covers:
The structure, burst geysers and resultant damage. It basically covers permanent fixtures and fittings in the house. Some insurance providers cover garages, boundary walls, fences, gates and swimming pools.
How much does it generally cost?
If you take the insurance out with the bank, in most instances, it’s cheaper. This is because you don’t have to pay any additional monthly admin fees and the application process is fast and easy. Add this to the fact that the bank will make sure that it provides adequate cover for that asset.
Most banks will be able to assist you with arranging for the premium to be debited from the Bond account.
It may also cost less because you have the benefit of no initial or annual insurance review fee.
There are no penalties for claims on previous properties.
What happens if you choose a different insurance provider?
The bank will charge you an additional administration fee.
You also need to consider the fact that the registration process could be help up because the bank will need to ensure that the policy is adequate and suitable.