Purchasing homeowner insurance in South Africa can be daunting, with so many options to consider. Your home is usually your biggest asset, so it’s important to do things properly and not rush into anything. If you are starting the process of purchasing homeowners insurance, below are a few of the main mistakes which you need to avoid.
Focusing too closely on price:
Although price is important when it comes to weighing up your home insurance options, it is not the be-all and end-all. Rather than purely focusing on price, make sure that your homeowners insurance company is financially stable and offers good service.
Choosing the wrong amount of coverage:
It is important to choose the correct amount of coverage, meaning that you don’t confuse the different values of your home, such as the market value and the replacement cost. Either use a homeowner’s insurance calculator or speak to your insurance company about how much coverage will be adequate for your needs.
Wrongly stating your home’s occupancy:
When purchasing homeowners insurance, make sure that you correctly state your home’s occupancy, meaning who exactly is living in your home. For example, there is a different policy for people who want to insure a home that they do not actually live in. Also, be sure to notify your insurance company if the status of your home’s occupancy changes.
Not understanding exclusions:
Most homeowner’s insurance policies come with various exclusions, such as damage caused by neglect and other wear and tear. Make sure that you are aware of all these exclusions so that you know exactly what you are getting.
Purchasing homeowners insurance is a vital step, so make sure that you avoid any of these common mistakes. Also, remember to use LikeMoney’s comparative platform to weigh up your options so that you can make an informed decision.