Homeowners insurance cover is imperative for anyone who owns a home, flat, townhouse or a body corporate. Homeowners insurance covers everything that is structural in your home as well as anything affixed to the walls, floors and ceilings. It is further extended to include the outbuildings, fixtures and fittings, water, sewerage, gas electricity, telephone connections, walls, gates, fences, swimming pool, pumps, tennis courts, saunas, gardens and driveways.
This insurance covers the “dwelling” for any unforeseen structural damage it may weather including damage from fire, lightning, earthquake, explosion, storm damage and theft/burglary. This cover can also be extended to include accidental damage to glass and sanitary ware as well as extras such as loss of rent, temporary accommodation if your home is inhabitable after a loss, a security guard to protect you post violent home invasions and much much more. With a good Homeowners policy you can rest assured that you have transferred your risk to an insurer who will endeavor to put you back into the same position you were in before your loss occurred.
Are you adequately insured?
This is the age old question with regards to Insurance, it is of utmost importance that you are adequately insured at your buildings current REPLACEMENT value. This does not mean your municipal value nor the value you could sell your home for. Remember these things are based on many other criteria such as area. We work on approximately R9500.00 per square meter. This figure will give us a base to work from. Remember if you have expensive fixtures and fittings or imported tiles or granite or unusual building materials such as green materials or rare materials this value should be inflated.
What happens if I am inadequately insured?
As your insurance broker it is our job at Graham Silva Insurance to advise you to insure your items at their correct and most appropriate replacement value. However we are not property evaluators nor can we force you to increase your insured value. The onus is on you, the insured to ensure that your home is valued at the correct replacement value. Should your home NOT be insured correctly “Average” will be applied at Claims Stage.
“Average” states that If at the time of loss or damage, the cost of replacing your property or goods insured is greater than the sum insured, you will be responsible for the difference and will bear a rateable proportion of the loss or damage.
Example of “Average”:-
“Average” means that should you be insured for R50 000.00, but all your goods are valued at R100 000.00, you are only insured for half or 50% of the correct Sum Insured. Should you suffer a R20 000.00 claim, your Insurer will only pay half of your claim, i.e.: R10 000.00 as you are considered your own insurer for the other 50% as the correct value was not disclosed and the premium for that was not received.