Types of insurance every homeowner should have
Category Property Advice
Given the significant investment you've made in buying your new property, you need to be sure you're protected as a homeowner. Home insurance is one of the most important items to consider when purchasing a home. It protects your investment and guarantees that your property and possessions are adequately insured in the case of loss or damage, allowing you to avoid costly surprises.
Home insurance may be required if you own a home and are paying off your bond at the same time. Even if it isn't needed, you should assess how valuable it is to have appropriate insurance coverage in the event of a burst geyser, a fire, or theft.
Why is it necessary to get home insurance?
Aside from financial security, there are several additional advantages of having house insurance:
- If your home is damaged, you may get repairs completed quickly and without having to wait a long time to save up the required finances.
- Your insurance policy will reimburse your temporary living expenses if you are unable to reside in your home due to a required evacuation - provided that your insurance claim is granted.
- To successfully accommodate homeowners, a lot of policy providers give the ability to incorporate specific features above and beyond the standard coverage supplied.
- Some insurance companies also provide a no-claims bonus, which allows homeowners to get money back after paying a certain number of premiums.
Picking the best insurance for your home
There are many forms of insurance available to homeowners. Homeowners' building insurance, home contents insurance, personal assets insurance, and bond protection are the four common types homeowners go for.
1. Building insurance
Home insurance is sometimes known as building insurance. This safeguards a home's structure from loss or damage due to fire, theft, or natural disasters like floods. Some insurance providers expand coverage to include structures like garages, greenhouses, and swimming pools, as well as permanent fixtures such as bathtubs, toilets, and fitted kitchens.
You will be covered from third-party claims if you take Personal Liability Cover in addition to your building insurance policy. An unintentional death, injury, or disease that occurs on your property might result in a third-party lawsuit against you. You will also be financially protected in the event of an unintentional loss or damage to the property of a third party.
2. Home contents insurance
Building insurance protects your home's physical structure from loss or damage, but it doesn't cover what's inside. Home contents insurance protects your belongings against theft, burglary, fire, intentional damage, and/or natural catastrophes such as storms and floods.
Home appliances are an example of household goods. House contents insurance does not often cover fixed things in your home, such as built-in cabinets or tiles.
3. Personal valuables insurance
Personal goods insurance protects items such as clothing, purses, computers, bicycles, and even jewellery that you would carry or wear outside of your house.
This cover comes in two types: specified goods and non-specified goods. The non-specific items coverage covers a standard list of common things and will reimburse you up to a particular amount in the event of loss or damage.
The specified items cover lets you protect your most valuable possessions, such as cell phones and laptops, against accidental loss or damage up to the amount stated in your policy plan.
4. Bond protection insurance
Consider what would happen if anything happened to you that prevented you from paying your bond for an extended period of time. In the case of death, incapacity, dread sickness, or loss of income, bond protection insurance will cover you. Although your bank may not require you to carry this form of insurance when you apply for a home loan, you should think about it regardless. It's soothing to know that if something horrible happens to you, you or your family won't lose your house.
Contact Seeff Hillcrest & Kloof today for more information on how you can insure your dream home.
Author: Seeff Hillcrest & Kloof
