Why You Need to Compare Building Insurance Cover

Before you signed on the dotted line and the sign in front of the house went from “On Sale” to “Sold”, remember how much time you spent comparing everything? From neighbourhoods, design styles, which bank offered you a better rate, and much more. Well, First for Women recommends that you spend the same amount of time when it comes to choosing the ideal buildings insurance for your home and you.  You definitely need to compare building insurance. Find out how to go about doing this with these tips. 

 Why is buildings insurance so important?

Building insurance cover is important because it provides financial protection against loss and damage caused by the elements and people, deliberately or accidentally. The cover helps the homeowner cover the cost of repair or replacement, which would otherwise have to be settled out-of-pocket. In this way, property owners have been of mind knowing that their home is covered financially in case of unforeseen disaster or circumstances. Building insurance cover is often a mandatory requirement[1] if you plan on having your home financed by a banking institution. This is because the banks want to ensure that their investment in protected. 

 What does buildings insurance cover?

Building insurance covers the following events:

• Damage or loss caused by natural disasters, like inclement weather or fire. The cover extends to the building’s structure and fixtures, like the roof or walls. 

• Damage or loss caused by people, in the case of theft, vandalism or accidents. For instance, a thief may break your windows to gain entry to your property. 

 Factors to consider when you compare building insurance 

• Coverage limits and exclusions. A policy's cover limits and exclusions will outline what is covered and what is not covered. Review your policy so that you understand the terms and conditions. Some buildings' insurance might not cover certain weather damage, such as flooding, and you must take out a separate policy. 

• Premium costs and deductibles. The premium cost is the amount you will pay for cover. Compare your premium costs from different insurers to find the most cost-effective policy that suits your budget. You must pay a service provider a deductible before your insurance kicks in. You need to decide how much you will pay in premiums and deductibles to strike the right balance. 

• Benefits and features. Some insurers will provide value-added services and benefits for their customers. First for Women provides the Guardian Angels on Call and the Guardian Angels Lifestyle Assist benefits designed to help make your life easier and more efficient. 

• Claims process. The ease and efficiency of making a claim is an important factors to consider. Find out How to claim with First for Women for more information. 

 How to compare building insurance 

When deciding on the best cover for your home, we suggest that you compare at least three different insurers based on the following factors:

• Pricing: When it comes to insurance, we are always tempted to opt for the lowest premium value, but experts advise that going for the lowest premium may mean compromising on the cover. 

• Value for money: Find out what each insurance company will cover. This includes the rand value and the type of damage for which your home is covered. Some cover types need to be supplemented because they don’t cover things like burst geysers, or flooding. You don’t want to find yourself paying for insurance only to find out that you’re not covered for that particular event if you need to claim. Ensure you understand what’s included and what’s excluded before deciding on a policy.

• Reviews and recommendations: What other customers say about the service and their claims experience with each insurer should tell you a lot about what you can expect if you sign up as their customer. Go online, read some independent reviews, talk to your homeowner friends about their insurer and see which company will suit you from a customer expectation perspective.

• Excesses: You also need to consider what excesses are involved when you need to claim, what the respective excess amounts are and if you are prepared and able to cover these amounts from your own pocket in the event that you need to make a claim.

Insuring with your bank? If your bank currently covers your home building insurance, or if you’re buying a new home, don’t let the bank or the institute you’re taking your bond with force you into taking their option. Always compare building insurance with the other options out there to ensure you are getting value for money and that your home is in good hands.

When you compare, you get to see what options are available for you, and you’re equipped with the right information, enabling you to make a more informed decision.

Get a building insurance quote from First for Women 

With 1st for Women’s comprehensive buildings insurance cover we have designed it specifically for women's and women’s needs at the perfect price point. When you take up comprehensive building insurance with us, we’ll protect the structure of your home against damage caused by fires, lightning, explosions, earthquakes, burst water pipes, storms, floods, falling trees, and so much more.

Aside from the protection that Buildings Insurance offers your home, it also gives you peace of mind and financial protection should something unfortunate happen. Contact us if you would like to get cover. 

Sources:

[1] Private Property - Home loan talk: insurance and assurance 

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.