Buying a new home is easily the most expensive purchase that you will make in your lifetime.
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The three most important polices to set in place include Homeowner’s Insurance, a Mortgage Protection Policy and Household Content Insurance.
Homeowner’s Insurance
Homeowner’s Insurance is also known as Buildings Insurance. This type of policy covers the physical structure of your home and its associated outbuildings, for example, the garage and carport. This insurance will pay you for damage caused by events such as fire, theft, flooding, storm, hail damage, earthquake etc.
Homeowner’s Insurance also covers fixed fittings and built-in units both inside and outside the home, concealed and unconcealed water pipes as well as the geyser and geyser components. So should a leaking pipe cause water damage or should the geyser burst, you can claim for the resulting damage.
It is important to be sure that the amount your home is insured for will cover the total replacement cost of your home. There will always be exclusions on insurance policies, so read your policy documents carefully and make sure you understand the terms and conditions.
Mortgage Protection Policy
A mortgage protection policy will settle your bond in the event of a death or disability, dread disease or retrenchment. This type of cover is critically important and is often made mandatory by the banks when a home loan application is processed. It therefore protects both the client and the lender’s financial interests.
Household Contents Insurance
This insurance will cover all the contents placed in your home like furniture and appliances. Should your home be broke into, this type of policy will cover the loss of your personal belongings and resultant damage from the event.
Don’t get caught on the backfoot, get your insurance policies in place to protect what will probably be the biggest investment you ever make.
Author: Tyson Properties
