Homeowners Insurance: Vital pitfalls to be aware of

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Homeowners Insurance

There are many things to consider when purchasing your home insurance. Here are a few things to mull over when looking for the right policy.

Homeowners Liability Coverage

Many people overlook this aspect of homeowners insurance and may end up being prosecuted for more than they can afford.

Liability Insurance covers you from financial disaster when you get sued for damage to someone else’s property as a result of an unforeseen eventuality occurring on your property. This also includes injury to somebody else.

Example 1: Your guest parks his car under a tree in your garden and as he gets out of his car, a branch breaks off, injuring him and damaging his new car.

Example 2: Your domestic worker cleans a window, the glass breaks and she has to be hospitalized.

Example 3: Your cute little kitten doesn’t like the sleazy salesman at your door and attacks. The unfortunate salesman ends up with scratches, bite marks, a battered ego and some dire sort of nervous condition.  

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I don’t like salesmen …

Liability coverage protects you in three ways: Personal liability, damage to the property of others, and medical expenses for injury to others.

Personal Possessions Insurance

Home Contents Insurance cover the contents of your home against theft, loss or damage. These items include appliances, furniture, rugs, works of art, curtains and so forth.

Portable Possessions Insurance falls under Home Contents Insurance and covers items that you take with you when you leave the house, like your laptop, handbag, glasses, jewellery, cellphone and other specified portable items.  This covers you against loss or damage of your portable possessions even if the loss was not incurred on your insured premises.

Example 1: You go to a business meeting with your laptop and while everybody is out to lunch, your laptop disappears from the boardroom.

Example 2: You show off your lovely new golden necklace when you have tea with your friends at the mall and afterwards,on your way to your car, some creep snatches your necklace and runs.

Example 3:  Walking on an uneven pavement on your way to work, you stumble and your new designer cellphone drops to the ground. Somebody steps on it and your world is shattered.

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Oops!

Items with a higher than standard value should be specified and insured accordingly. Always keep replacement value in mind. 

Additional Living Expenses

An automatic benefit of which many homeowners are unaware, is coverage for living expenses if the covered premises is damaged and uninhabitable. Your policy should pay for the cost to repair the damage to the structure of your home and reimburse the homeowner for the additional expenses of living elsewhere while the repairs are being made.

Example 1: A huge storm causes your home to flood. Everything is under water and living in your home is impossible.

Example 2: An earthquake damages your home. Whilst repairs are being made, it is safer for you to live elsewhere.

Example 3: Lightning strikes and your electrical wiring is being repaired. Living conditions are unsafe and you are advised to live elsewhere during the course of having your wiring repaired.

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Lightning is NOT your friend

Ensure that your policy provides for additional accommodation, otherwise you may end up paying and arm an a leg out of your own pocket.

This does not apply when you redecorate and dislike the state of chaos, dust and workers all over.

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Hahaha , NO … redecorating does not count for temporary relocation reimbursement

Be sure to avoid any pitfalls by reading through your policy carefully and thoroughly. Speak to your insurance consultant if you need more information regarding your policy and only commit to signing the policy contract when you are satisfied that your Homeowners Policy covers all your individual needs.

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