Home Owner Insurance
Insurance is an inseparable component of the home buying process. It is compulsory requirement that lenders require at the inception of the home finance application.
home owners insurance
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When applying for Home Finance. It is important for home buyers to note that part of the application process includes making provisions for Bond Protection, Home Owners Insurance and other insurance types which may be manditory requirements by banks and lending institutions to be in place before or after the home loan approval or granting.
Home owners insurance covers any destruction or damage that may occure to the interior and exterior of the newly acquired home, loss or theft of possessions, and includes personal liability for harm or injuries to others (third-parties).Â
Understanding Home Owners Insurance
Insurance may often be a compulsory requirement by banks and lending institutions for home buyers to have in place before or after the home loan application process. This normally includes the following types of insurance Home Owners Insurance – this type of insurance cover is used to protect the bank’s financial interest which results as a direct consequence of the the Home Loan Disbursement made to acquire of the new family home. It covers against the unfortunate misfortune occurrences that may result to various types of losses, including loss due to theft of possessions or damage to the physical structure of buildings.
Other insurable perils that may also be covered under the same or seperate insurance covers include damage due to fire, plumbing faults and natural disasters alike (flooding, lightening strikes, land slides, earthquakes) etc.
Types of Insurance
Home owners cover is a compulsory requirement by all financial and lending institutions. It’s used to protect their financial interest for the home loan disbursement made for the acquisition of the new home. This is to cover against any perils or damage that may affect or cause loss due to theft of possessions or damage to the physical structure of the buildings. Some of the insurable perils/damage indicated ma be caused as a result of Fire, Flooding, Plumbing and Natural Disasters.
Home building insurance is a compulsory requirement and necessary to take care of any damage to your house, caused by such occurrences as Leaking Pressurised Pipes, Burst Geyser, Acts of Nature, Explosion, Subsidence, and Fire. At times may even provide cover for the cost of calling out services like fire brigade and even arrangement of temporary accommodation after an incident has left the home uninhabitable.
Home contents insurance cover protects the house contents against perils such as Theft, Intentional Damage, as well as damage caused that may result from other elements like Power Surge or a Burst Geyser. It also includes damage caused by Fire, Lightning Storm, Hail and Floods.
Life cover is generally a type of insurance taken on the life of the home owner or person (breadwinner). It’s intended to make provision for one’s dependents in the unfortunate situation of the death of a breadwinner. It helps to ensure that the family continues to afford the lifestyle one has always planned for them even if the breadwinner is no longer around.
It often include family upkeep like buying groceries, paying of children school fees, and continued payment of the home loans monthly instalments or settlement where possible and car payments. This type of insurance in essence is designed to ensure that the family’s financial needs continue to be covered.
Estate planning should be considered as an integral part of the home buying process, this for the reason that buying a home is considered as part of the family’s wealth creation process. Wealth creation in its own is all about acquisition of assets and for building and leaving a legacy for loved ones.
Part of legacy building also seamlessly involves making provision for a structured manner and means by which these assets can be equitable distributed amongst one’s loved ones in accordance with his/her predetermines desire. This process is done through a legal process or document called a Will.
