Title: Homeowners and Household Insurance
Author: Dale Maxwell
Article :
As a homeowner, you need two types of insurance to protect
yourself against the unexpected. Homeowner's insurance covers
the structure of your property, while household insurance covers
the contents "your possessions".
If you own a home, you need both Home Owner's insurance and
Household insurance.
Home Owners Insurance - relates to the structure of your
property, and covers you for Fire, Water Damaged and other
unexpected happenings.
When you get a home loan from a bank, it will insist that you
take out homeowner's insurance. The bank needs to make sure that
it can recover its loan should the property be damaged or
destroyed. So shop around before your home loan is approved,
otherwise the bank will insist on using their agents, which can
cost you more at the end of the day.
If you own a home/flat or apartment in a sectional title
property, you are usually covered for homeowner's insurance, and
the premiums are included in your monthly levy.
Household Insurance - covers the contents of your home against
loss arising from events outlined in your policy document.
Contents also covers things in your garage/storeroom as well as
garden furniture and other items outdoors, although there may be
conditions.
You cannot take out household insurance to cover only specific
items, such as your television, video recorder and sound system.
Virtually all household insurance is provided on the basis of
"new for old". In other words, the insurance company pays out
what it would cost you to replace the insured item at current
prices rather than what it originally cost you to buy it. You
must therefore keep an eye on the current replacement cost of
your possessions.
When you take out household insurance, you place a value on your
household contents by insuring them for a particular sum. This
sum, less any excesses which you may have to pay, is the maximum
that your insurance company must pay you if everything is lost,
stolen or damaged.
Factors that will help lower your premiums. Security Gates Alarm
System Armed Response
About the author:
Dale Maxwell - http://www.insurance-south-africa.co.za -
http://www.dialdirect-quote.co.za
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