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The benefits of building (property) insurance

Insurance brings additional costs but the benefits of property insurance make it worth the resources. We explain why.

Benefits of Home Insurance

Article summary:

  • Buildings insurance covers the structure of your home as well as all permanent fixtures and fittings.
  • It also covers you for other liabilities you may not even be aware of, such as your responsibility for injuries incurred on-site.
  • Building insurance and household contents insurance are highly recommended supplements for your home purchase.

A new house brings with it a wealth of additional responsibilities, including practical matters such as maintenance and homeowner’s insurance. 

This is why we highly recommend acquiring home insurance to supplement your new home purchase. Here we explain why.

The benefits of property insurance

  1. Protection from property damage.
  2. Coverage for geyser and electrical problems.
  3. Coverage for injuries on-site.
  4. Protection from the effects of power outages.
  1. Protection from property damage
    You may be thinking “what sort of property damage will I have to worry about in South Africa? We don’t get tornadoes or earthquakes”
    Well, you can’t know for certain, and that’s the thing. Its better to be protected against whatever unforeseen events may occur.
    Properties can be damaged by fire, lighting, storms and other such forces of nature. Property insurance can save even on seeminly small costs like repairing broken windows.
  1. Coverage for geyser and electrical problems
    Geysers are expensive to replace, yet it has to be done, as no one in a modern society wants to go without hot water.
    Thankfully property insurance will cover you for geyser repairs, as well as any necessary repairs to your electrical system.
  1. Coverage for injuries on-site
    Many homeowners may not even realise they can be held liable for injuries to domestic workers or other people working on the property. Property insurance will cover you for any such liabilities.
  1. Protection from the effects of power outages
    This is especially a concern during Eskom loadshedding. Power outages can reduce the lifespan of appliances, and power surges can damage them. Property insurance will cover you for any such damage.

 Get the right type of cover

You need to be aware that property insurance covers damage to the building and appliances, while household contents insurance covers you for things such as theft. It helps to have both, and some insurance providers will offer packages that include property, household content and even vehicle insurance.

Check the exclusions and excesses

For buildings insurance, the structure (what the building and the roof are made of) as well as the location affects the cost of premiums.

This type of homeowner’s insurance will always be subject to exclusions and excesses, but will cover the bulk of your expenses if the loss forms part of an insured event.

Save for property insurance by getting the best deal on your home loan

Getting a good deal on your home loan will help you conserve funds for additional expenses such as insurance and transfer of property costs.

A home loan comparison service such as ooba Home Loans can assist by submitting your home loan application to multiple banks and allowing you to compare deals.

We also offer a range of tools that can make the home buying process easier.  Start with our Bond Calculator, then use our Bond Indicator to determine what you can afford. Finally, when you’re ready, you can apply for a home loan.

Get a free home loan comparison

Multiple quotes from the big banks to compare.

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Ooba home loans services are simply the best. My Consultant Bianca Dancer was so hands on and helpful from the get go. She guided me through the entire process and put me at ease being a first time buyer. I highly recommend their services.

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Jay Govender and Maleshini Reddy from OOBA provided outstanding assistance and guidance in securing our home loan. Response times were excellent and they were professional and friendly.

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Estelle Vorster was really helpful in securing the best deal for my home loan, she not only negotiated a lower interest rate she went as far as securing 50% discount on the transfer costs.

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