Home insurance means a property insurance that is done at the time of buying a property. It protects you from financial loss as it covers all the damages to your home and all other things that are included in the policy. These damages include fire, natural disasters, theft and loss.
How much does home insurance cost in South Africa?
The cost of home insurance in South Africa depends on your property. It costs Rs.1800 psf (per square feet) for basic property and around Rs.3000 psf (per square feet) for lavish property.
The cost also depends on the location, area and how much coverage you want.
What is covered by Home Insurance?
Home insurance covers all the damages to your home and belongings. It provides you financial support against the loss caused by theft, natural disasters such as earthquakes, lightning and tsunamis, wind, smoke, snow and rain.
At the time of filing an insurance policy form, you need to put in all the information related to your house.
What are the benefits of Home Insurance?
The home insurance has certain benefits, such as:
- It provides you with financial support.
- It provides you with a piece of mind.
- You can save your income for the future.
- You can easily get a replacement for your loss.
- You remain protected in the event of any lawsuit.
- It repairs your house in case of natural damage.
- It does not cost much. So, you can easily apply for a home insurance policy.
Is it Necessary to have home insurance?
No, it is not necessary to get home insurance in South Africa. But, if you have taken out a mortgage, then your lender may ask you to do home insurance.
How are home insurance payment held in South Africa?
In South Africa, you need to pay for your property insurance directly. It does not involve an escort account method.
You can either choose whether you want to pay monthly, quarterly, semi-annually or annually.
Types of home insurance:
There are three types of home insurance:
Comprehensive (all risk) insurance:
It provides you protection against all the losses. It includes your home and things related to your home. All the rules and regulations are listed in the policy form.
This is the second type of home insurance. It provides insurance on all the bigger items which also include the whole building.
Basic insurance policy:
It is the cheapest type of house insurance policy. It is only applied to certain things that are listed on the policy form.