Insurance for first time home buyers may seem simple enough, but there are some key points every new homeowner should consider. Buying your first home is an exciting milestone, but it also comes with the responsibility of securing the right insurance coverage for your
most significant investment. Understanding the insurance options available can be overwhelming, but these essential tips will help you navigate the process more confidently.
Full Disclosure to Your Insurer
The type of property you purchase has a direct impact on the insurance you require. In South Africa, residential properties typically fall into three categories: freehold, sectional title, and properties within estates.
Knowing the type of property you’re buying is crucial, as it dictates the specific clauses your insurance policy should include. For instance, if you opt for a freehold property, your mortgage provider will almost certainly require insurance for first time home buyers that covers the physical structure of the house.
On the other hand, if you choose a sectional title property or an apartment within a housing complex, the body corporate is legally responsible for insuring the physical structure, and the premium is usually included in your levies. (However, never assume this is true – always check!)
Keep in mind that if you plan on renovating your property, whether it’s a freestanding home or an apartment, it’s essential to inform your insurer to adjust your coverage accordingly. Also remember that in the case of a body corporate, approval is required for any renovations that alter the apartment or unit’s structure.
Don’t Forget Your Home Contents
While many people tend to focus on insurance for first time home buyers that covers major incidents like fire, burst geysers, or structural collapses, it’s crucial to remember that building insurance only covers the structure itself. It does not automatically include the contents inside, such as furniture, appliances, and personal items.
To ensure you’re adequately covered, regularly review your policy to accommodate any new purchases or to take downsizing into account. Remember, insurance is designed to cover specific risks, which are contractually agreed upon between an insurer and a client. If you’ve purchased expensive new items, for example, and they’re not specified, they’re not covered.
Consolidating your
short term insurance needs under one policy, like combining home contents and car insurance, can be very cost-effective and can help simplify your coverage management. Even better, having a trusted insurance advisor keeping tabs on your needs and ensuring you’re neither under-insured nor over-insured can save you a lot of money in the long run.
Your Responsibilities as a Policyholder
Securing the right type and level of insurance is just one aspect of managing your personal risks as a homeowner. Insurers consider various factors when determining your premium, including your neighbourhood’s crime level statistics and the measures you’ve taken to reduce potential risks.
Investing in home security systems such as burglar alarms, security cameras, electric fences, or hiring private security can help lower your insurance premium. Some of these measures might even be prerequisites for certain insurance policies.
After agreeing to your policy’s terms, it becomes your responsibility to maintain and ensure the proper functioning of your home security systems. Installing and maintaining adequate home security, just like performing adequate home maintenance, is critically important.
Always remember to carry out regular maintenance to avoid preventable damage to your property.
Neglecting home maintenance could lead to claim rejections, reduced payouts, or unforeseen complications in the event of a covered incident. Creating a
home maintenance log is a great idea, because it helps schedule those important home checks and fixes.
Stay in Touch with Your Insurance Advisor
When insuring your most valuable asset, it’s beneficial to maintain regular communication with your insurance advisor. They can provide peace of mind by ensuring your investment remains secure, even in unexpected circumstances.
Each property is unique, and your insurance needs may change over time as your assets fluctuate. Your advisor can guide you through the claims process and help adjust your coverage to align with your evolving personal circumstances and insurance requirements.
By staying informed and seeking expert advice on insurance for first time home buyers, you can safeguard your first home with confidence and peace of mind.
Home Insurance Done Right
At The Pogir Group, we’ve built a solid reputation for service excellence, integrity, and always ensuring that our clients receive the very best cover available. Our consultants are experts in their fields – whether providing
short-term insurance, life financial planning, facilitating wealth management, healthcare solutions, or employee benefit programs.
We believe in cultivating long-term relationships with our clients: relationships based on trust, integrity, and insight into your unique lifestyle needs and circumstances.
Whether you’re seeking the best insurance for first time home buyers, growing your business, insuring your valuables, or expanding your asset portfolio, we’re here to help you – every step of the way.
For more information,
contact us today to arrange a no-obligation consultation.
Pogir.
Smart, with heart.
