Insurance Policies for your home | General

When buying a home, it is always a good idea to take out homeowners building insurance – and in some instances with a home loan it is even compulsory. Home insurance is one of the best ways to ensure your property is protected in the case of an accident or an emergency.


Generally speaking, there are three types of insurance policies one can consider when buying a home, homeowners building insurance, home contents insurance and personal valuables insurance.


1.     Homeowners building insurance (building insurance) - covers the physical building structure in the event of accidental loss or damage due to fire, theft or even natural disasters like floods or tornadoes.


When taking out a home loan it is compulsory to take out building insurance to also protect the bank from any loss in the event of any damage done on the property. It is under this policy where you would cover things like the swimming pool, geysers or gate motors and the like.


2.     Home contents insurance – protects the contents of your home in the event of damages or loss caused by accidents such as theft, fire, storms etc. Under your policy you can specify any good you would like to insure such as appliances, furniture, clothing and the like. While a lot of people think ‘it won’t happen to me’ and don’t take out home contents policy, it is always a good idea to make sure you are covered in the event of something beyond your control.


3.     Personal valuable insurance – covers personal valuables that one usually carries or wears outside of the house such as laptops, cellphones and jewelry. This means that in the event of a smash and grab your personal belongings will be covered.



So while you may not think it will happen to you, taking out an insurance policy will help prevent financial strain in the event something does happen beyond your control giving you the peace of mind you deserve.