Is your home insurance cover enough? That is the question on many homeowners’ minds.
With the imposing risks of floods, fires, and robberies, many South African homeowners are underinsured, which is putting their investments and loved ones at risk of losing their homes.
As reported by IOL, owning a home in South Africa is a significant financial milestone that can represent up to 80% of a family’s total wealth. But this can also be daunting, as fear of one day losing your house is paramount.
There are, however, factors which homeowners should be aware of:
The impact life insurance has on homes
Although life insurance is not typically thought of as a home insurance product, it does play a major role in helping homeowners take care of their families.
A large number of households with home loans don’t have life insurance. This means, in the unfortunate event of death, their families will have to continue paying the mortgage on the house. Having life insurance ensures that your bond and other financial needs are covered if the homeowner dies.
Home insurance
Homeowners’ insurance contributes to protecting the physical structure of your home against a range of insured risks.
These can include damage caused by geysers, water, fire, floods, or lightning, and even malicious damage to the property. Having home insurance helps protect the roof over your head.
Major risks to your home
With the rising number of natural disasters happening in the country, many homeowners can leave themselves at a disadvantage by not opting for home insurance.
Floods and fires continue to wipe out homes almost every year in many provinces. In addition to natural disasters, the country is experiencing an increase in criminal activity.
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