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<\/p>\nYour home is one of the most expensive assets you will ever own. There is a long list of unfortunate things that can happen to it \u2014 from common annoyances like a burst geyser that ruins your carpet to unlikely, but devastating events like a fire that burns it to the ground. That\u2019s where home building insurance can save you from significant financial losses as well as give you peace of mind.<\/p>\n
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With building costs typically between R10,000 and R20,000 per square metre, completely rebuilding an average-sized three-bedroom home could cost between R1.5 million and R3 million, depending on where you live. The costs could be even more if you have premium finishings and fittings.<\/p>\n
Ernest North, co-founder of fully digital platform Naked Insurance, says that a building insurance policy covers incidents that damage a home\u2019s physical structures and permanent fixtures. The risks building insurance can protect you from range from natural events like floods, wind or lightning through to power surges that fry your gate motor or robbers that break down doors to gain access to your home.<\/p>\n
“Insurers often say that if you could turn your home upside down, anything that will not fall out is a part of the home, and should thus be added to your building insurance policy. For the rest of the stuff inside your home, you would buy contents insurance,” says North. Not only is buildings insurance a good idea, it\u2019s also compulsory if you are financing your home through a bank.<\/p>\n
North says that you should strive to insure your home for what it will cost to clear and rebuild your home, rather than for its market value including the land. You don\u2019t want to over-insure your building because that means you will pay a higher than necessary premium and not get paid out more than the costs.<\/p>\n
But you also don\u2019t want to under-insure because then an insurer will not pay out enough to cover repair or replacement of your fixtures or structures after a claim. Building costs are rising around 0.2% month-on-month\u2014which means you should frequently check that you\u2019ve insured your home for its full value with inflation taken into account.<\/p>\n
Insure for replacement value:<\/strong><\/p>\n The replacement value of your home will include all the costs of rebuilding, including building contractors\u2019 fees, demolition costs, removal of rubble, municipal approvals and building materials. Some of these costs vary according to where you live, due to differences in labour and transport costs. It\u2019s important to remember some of the non-obvious elements such as:<\/p>\n North says that many homeowners are investing in renewables to manage the loadshedding crisis. Given that the costs of solar panels, inverters and batteries can run from tens of thousands to hundreds of thousands of rand, it\u2019s wise to update your policy when you install a solar solution for your home.<\/p>\n Consider getting a professional\u00a0valuation<\/span>:<\/strong><\/p>\n The best way to establish your home\u2019s estimated replacement value is to ask a\u00a0property\u00a0valuation<\/span>\u00a0expert or a building contractor to evaluate it. They will be able to analyse your home and compile a full report about the value of the structures and fittings. \u201cYou can also find out the average cost per square meter of building in your area and multiply it by the size of your home to get a rough estimate,\u201d says North.<\/p>\n The value your home is insured for doesn\u2019t necessarily need to be the same as the purchase price or the market value. For example:<\/p>\n Many people assume that they will need to insure their home with the preferred provider associated with the bank that granted them a home loan. But North says you are free to choose your own provider, so it\u2019s wise to shop around to ensure you\u2019re getting the best deal. Today, it\u2019s easy to get a binding online quote from a digital provider\u2019s app or website for comparative purposes.<\/p>\n These platforms use technology and artificial intelligence to deliver more convenient, relevant, affordable and transparent customer experiences. Because they are automated and efficient, they can offer significant premium savings over the old-school insurer. It takes just a few seconds to find out whether you\u2019re getting a fair premium and sign up if you like what you see.<\/p>\n In a\u00a0article\u00a0published on 3 Sep 202, Regional Director and CEO of RE\/MAX of\u00a0Southern Africa<\/span>, Adrian Goslett, explains the importance of knowing exactly what your insurance covers.<\/p>\n If you\u2019ve done some renovations or improvements, here\u2019s what you should check when it comes to your home insurance policy. To start with, it\u2019s important that homeowners understand the two different types of home insurance:<\/p>\n Buildings insurance.<\/strong><\/p>\n As the name suggests, this covers the structure of your home and its outbuildings, and their permanent fittings, against fire, damage and theft. If you own a house, make 100% sure you have buildings insurance. Regardless of whether you have a bond or not.<\/p>\n Home contents insurance.<\/strong><\/p>\n This covers your stuff. If you could turn your house upside down and shake it, what falls out is home contents \u2013 clothes, furniture, TV, wine glasses, the lot. A lot of people don\u2019t have home contents insurance.<\/p>\n Do a post-reno buildings insurance review<\/strong><\/p>\n If you\u2019ve got a bond, it\u2019s compulsory to have buildings insurance. This is usually taken care of by your bank, and the premium is \u2018hidden\u2019 in your monthly bond repayment. But you\u2019re not obliged to accept your bank\u2019s quote, and it\u2019s possible you\u2019ll get a cheaper premium from the insurer that covers the rest of your valuables. So do shop around!<\/p>\n Insure for replacement value, not market value<\/strong><\/p>\n A building\u2019s insured value isn\u2019t its market value. Buildings insurance should cover what it would cost to rebuild your property from the foundations up, including your boundary walls, solar panels, swimming pool, taps and tiles. It should even include what you would need to pay in a worst case scenario, like demolition charges and waste removal, and the professional and municipal fees that are part of the building process.<\/p>\n Review your home contents coverage<\/strong><\/p>\n If you\u2019ve built onto your home, and filled the new extension with brand-new furniture and appliances, this is a great time to update your home contents insurance as well. As with buildings insurance, the key is to make sure you cover your home contents for their current replacement value \u2013 don\u2019t guess. And remember, insurers can only protect what they know about. It helps to keep the original receipts for items like big screen TVs, so that you can prove their value if you need to claim. To help you assess your home contents correctly, here\u2019s a handy home contents inventory.<\/p>\n","protected":false},"excerpt":{"rendered":" Your home is one of the most expensive assets you will ever own. 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