The things that make your house a home are the people you share it with and the memories you make there together. And while home insurance can’t replace that, it’s a must-have protection to make sure the things you enjoy in your home are protected. Dialdirect is one of the leading insurance providers in South Africa, offering reliable, comprehensive, and fair home insurance. So get started today with a fast and free home insurance quote and learn more about proper insurance benefits.
What is home insurance and why do you need it?
Home or household insurance provides financial relief if a covered event breaks, damages, or ruins the physical structure of your home, your property, or your personal belongings and the contents found inside your home. That means your clothes, television, sports equipment, furniture, and more. Most home mortgage lenders require borrowers to hold a policy. Still, it’s important to note that home insurance can also step in and help payout if you’re held personally liable for any accident or injury of someone else’s property.
It’s also worth noting that there is a difference between household insurance and buildings insurance. So, if you’re wondering whether you need home insurance or buildings insurance? Read our buildings insurance guide here.
Is home insurance mandatory?
Home insurance is not mandatory* in South Africa but it’s financially irresponsible to go without it. However, you may find that financial institutions that have a vested interest in your property, like a bank or mortgage office, could require a household insurance policy before they will approve a loan or line of credit. Remember, these institutions see your home and property as an investment, and they’ll want to make sure it’s properly covered (and you should, too).
Once your home is paid off and the bank no longer has an interest in it, it’s still recommended that you keep an active and comprehensive insurance plan.
What should your home insurance plan cover?
Home insurance coverage is a personal decision. The amount of coverage you choose will be impacted by your own assessment for risk and budget. However, be cautious about taking out a policy that doesn’t offer enough coverage. This could leave you underinsured in the event of damage or theft. Even worse: it can impact you financially, and leave you on the hook for the majority cost of any repairs or replacement costs, and at risk of not receiving the full reimbursement value of your lost possessions.
While what is covered varies by provider, at Dialdirect, when we speak about coverage, we mean replacement costs, repair expenses, or fair value cash reimbursement, which takes into account depreciation.
It’s recommended that you update the contents in your policy annually and be sure to save receipts for major items. High-priced and specialty items may require a separate policy in order to get full coverage.
Items that should be covered in your policy are:
- Natural disasters, like flood and fire, that damage any of the contents of your home will be covered.
- Can you imagine losing your wardrobe tomorrow? If your first thought is one of joy at a shopping spree, then you’ll want home insurance to help cover some or all of the replacement costs. Other personal items typically covered by insurance are home appliances and furniture.
- Good insurance will also have a personal liability element where you’ll be covered if you injure someone or cause property damage unintentionally or through accidental neglect.
What isn’t covered by home insurance?
Just as important as what is covered is understanding what isn’t covered by your household insurance plan. The biggest thing to understand is how your policy covers natural disasters. If the home you want to ensure is in an area deemed to be a high risk for flooding, for instance, you might be required to take out a supplemental policy that focuses on natural events. Remember that certain types of water damage won’t be covered under some policies.
Other areas that might not be covered include damage from renovations, war (sometimes called Acts of God in the fine print), clean-ups following mishaps, power failures, and general wear and tear.
Filing a claim for intentional damage or loss is considered insurance fraud.
The right way to choose home insurance
The ideal home contents insurance plan correctly covers your home, contents, and personal belongings and has coverage for common incidents, natural disasters, and unforeseen eventualities. Once you have an understanding of the coverage you need, shop around and get quotes from several providers to find the one that offers premiums that are affordable to you.
Once a year, take a moment to assess your coverage. Have you added anything to your home that needs a special call-out on your policy? This could be new appliances or installing a pool. When you’re doing this personal audit, look at your bill: Does it seem reasonable for the cover you have? Consider getting quotes or speaking with your provider to make sure your rates are the best available.
Get a free home insurance quote online
Now that you understand the importance of house insurance, it’s time to consider the best policy for your needs. Dialdirect is one of the leading insurers in the country, offering amongst the best home insurance in South Africa. Whether you’re looking to change providers or take out insurance for the first time, Dialdirect is ready to assist you with a fast and free home insurance quote online today.