Home Insurance - Protecting Your Assets

Home Insurance - Protecting Your Assets

Category Expert Insight

Safeguard your Greatest Asset - Your Home

Your home is more than just a roof over your head; it is a home filled with memories and personal possessions. Your home is probably one of the most valuable assets you will own. No matter how much you bought your home for or how you financed it, unforeseen events can cause huge financial loss and grief to any homeowner. Natural disasters, accidents or burglaries can happen at any time and cause significant damage or loss to your property and the contents inside. Household insurance is the key to providing you with a shield of protection against the financial loss that can arise in such circumstances.

In this article, Seeff Properties Botswana covers the essential aspects of insuring your home. Whether you are a new homeowner looking to secure your investment or a long-time homeowner looking to renew your existing coverage, Seeff offers some practical tips and advice on navigating the (sometimes overwhelming) area of homeowners insurance.

Property Protection

The greatest benefit of household insurance is that it provides you with protection against financial loss in the event of fire, theft, or natural disaster. The replacement value or the cost of repairs of damage to your property in the event of a fire, for example, can be exorbitant and in most cases could leave you financially ruined. Insurance on your home will provide you with protection against this risk. The insurance that you take out on your house would, in simple terms, cover the cost of rebuilding or repairing your home. It is always important to speak to your insurer about the actual details of your insurance policy and what it covers. Insurance policies generally only cover the physical building or the contents. Be sure to know exactly what you are covered for and how the two types of policies work together.  

Mortgage / Bond Requirement

If you are taking out a home loan to finance the purchase of your home, the lending institution will require that the home is insured. It is standard practice that the lender / bank will require this as protection on the money they are lending you.

Additional Living Expenses

In the unfortunate situation where your home is damaged or uninhabitable to an unforeseen event, the insurance policy that you take out should cover additional expenses. This could be a security guard for the night or temporary accommodation, depending on the damage that was caused. Again, check your policy documentation to determine the extent of your coverage.

Household Contents Protection

Whilst the standard home insurance will cover the building, it is highly advisable to also cover the contents of your home. The insurance policy will cover these contents against theft, fire and other risks that could cause loss or damage. When you consider the cumulative value of everything inside your house (from your TV to beds and linen, children's toys to all your kitchen equipment) you will estimate that this has enormous value. If a fire were to gut your home, you could suffer a financial loss and would unlikely be able to afford to replace all these items.

Just a word of warning, always ensure that your insurance policy is up to date and clearly specifies the items in your house that you are insuring, especially those of high value. Roy Stolsie, Director at Kalahari Insurance Brokers reiterates that "you should keep in contact with your broker or insurer and update them of any changes to your home or the possessions inside it. This is one of the single most important aspects of household insurance."

At the end of the day, having your property and belongings covered by insurance provides numerous benefits to protect you against the potential financial loss you could incur in the event of loss or damage to your property. With this goes peace of mind and a sense of security, allowing you to enjoy your home without the worry of financial loss.

Author: Seeff Properties Botswana