Houseowners insurance � A necessity for homeowners
| Wednesday June 29, 2016 12:50
Houseowners insurance, also known as homeowners insurance essentially provides financial protection against unforeseen events such as natural disasters.
Houseowners insurance covers your house, including outbuildings, fixtures and fittings, perimeter walls and pools pavings against loss, destruction or damage arising core perils.
The core perils include; fire, lightning, explosion, storm, wind, water, snow, bursting, leaking or overflowing of apparatus, theft, impact, rent and liability. Houseowners insurance policies may differ from one insurer to the other depending on the add on’s or extensions but the damages caused by core perils are always covered because they cause the most significant damages.
There are special exclusions to the cover, for example, the company will not be liable for the first P1,000 of every claim arising from a deliberate or willful act (including theft) after the dwelling has been vacant for more than 60 consecutive days. The houseowners policy protects you against huge financial setbacks you may suffer in case your house is destroyed or damaged by fire, or other natural calamities.
If anything happens to your home, you won’t have to start building from your pocket or bank loans again, the insurer will compensate ​you by either payment or reinstatement or repair.
Should there be any liability or legal responsibility arising from injuries incurred whilst on your property, homeowners insurance protect you from ​such. Liability coverage compensates for accidental death, bodily injury or illness or accidental loss or damage to property, up to P1million for any one accident or series of accidents arising out of one event including costs and expenses.
It is always advisable to purchase houseowners and household contents insurance as a package policy. This means that the policy covers both damage to your property and house contents. ​The household contents policy covers household contents or personal effects you own or for which you are responsible while in the dwelling against perils such as theft, fire, lightning, storm, flood, etc. Therefore if your possessions are destroyed or stolen in the house there is no need to panic because the insurer will reimburse you for the value of the lost or damaged contents.
Important points to consider during and after purchasing​ houseowners ​insurance:
l Make sure you get enough insurance coverage to replace your dwelling, this would include professional fees and the cost of demolition.
l Know exactly what you are covered for.
l Seek professional advice from your broker or agent.
l Always notify your insurer if you are doing any major developments to your house such as renovations.
l Keep your house secure and well maintained. It is important to note that houseowners insurance is one of the cheapest covers homeowners can purchase considering the huge financial setback one could suffer, with minimum premium starting at only P1,500 per annum for a stand alone house. Because anything can happen and simply for peace of mind get houseowners insurance.
Botswana Insurance Company
(BIC) Gaborone