Hopefully most of us out there have insured our homes and belongings against theft, fire and other types of damage. Lots of us view it as an expensive pain in the neck and we think nothing will ever happen to us. However I have been very grateful in the past to at least have some sort of insurance cover.
South Africa is known for its high crime rate and high incidence of home invasion robberies, therefore theft insurance seems to be a no-brainer. Most insurance packages will also cover damage by fire, unless the fire is deliberately started. However the importance of fire insurance is sometimes overlooked by some homeowners.
Unlike a robbery, terrible as it is, fire can destroy all your belongings, the house itself and all the people inside. The western Cape is notorious for having a well documented yearly fire season between the months of December and April. Each year millions of rands worth of damage is incurred by homeowners.
It is not only bush fires that can damage your home. A cigarette can also start a fire very easily as can faulty wiring, so not only people in bush fire hot zones need this cover.
Those with insurance usually have a happy ending, this is not always the case though if the homeowner does not update the contents of his home or any extensions or improvements to the home. You are only covered for what your policy is worth. If you add a R300 000 granny flat in your backyard and don’t update your insurance you will have lost that money.
In the end the homeowner always pays because of the increase in monthly premiums after a claim.This is something you usually can’t avoid. But at least with insurance you may come out a bit better on the other side.
