Make sure your new Cape Realty property is properly insured
PUBLISHED 30 JUN 2019
Home insurance is one of the most important ways you could protect yourself financially - but many of our homes are inadequately insured.
Whether you live in an apartment, townhouse or traditional house, having the right insurance policy could be a lifesaver if your home is damaged by fire, floods or natural disasters. Let’s take a look at the different types of home insurance and the cover they provide.
What does home insurance cover?
If you’re a first-time home buyer, you may be wondering what insurance is all about - and it can certainly sound confusing.
Fortunately, most home insurance policies offer cover against damage done to your home by these events:
- Severe water damage from burst pipes
- Flooding caused by heavy rains and other natural events
- Public disorder and rioting
- Damage done during break-ins and other crime events
Other types of damage may be included in your home insurance policy, and you can ask your insurer to add extra cover for an additional monthly fee.
One really important thing to know about home insurance is that it usually doesn’t cover damage that results from maintenance issues.
You’ll have to see to issues like rising damp, waterproofing, and plumbing and electrical maintenance and pay for the maintenance costs from your own pocket.
If the damage to your home was caused by a lack of maintenance, your insurance company may refuse to pay your claim. It’s a bit like keeping your car in roadworthy condition even though it’s insured.
It’s also important to insure your home for its replacement value - the cost of rebuilding it - and not the market value. That’s because the price of homes falls from time to time, but building costs keep going up.
Who is responsible for insuring a Sectional Title property?
If your home is a Sectional Title property like most townhouses and almost all apartments, your insurance should be arranged by the Body Corporate. You’ll have to pay an insurance premium as part of your monthly levies.
Should you decide to renovate your townhouse so that its outside structure is different from the original plan, you’ll need to ask the Body Corporate to inform their insurance company. This will ensure that your property is insured for its full value, not just the value of the original building.
If you’re looking for the ideal new home, we’d love to help. Contact the Cape Realty team today.
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