How much household insurance do you need?
Household insurance policies can cover both the structure of your home and the contents of your house. How much household cover you will need depends on such factors as the value of your property and assets and how much it would cost to replace these items.
Most people want cover that makes funds available to make urgent repairs or to replace essential items. This way, if there is damage to your household property that compromises living standards or poses a safety risk your household cover will enable you to take quick remedial action. A good benchmark for basic household insurance is that it will provide sufficient cover to make emergency repairs.
Insuring your personal belongings is largely about balancing the cost of the premium against the potential replacement cost.
You may choose to insure your household goods for their cash value at the time of loss or damage (and, because of depreciation, most goods will obviously be worth less than when new) or for the cost of replacing those items.
Household insurance that pays you the replacement costs of your household goods makes it easier to buy new goods in the event that your personal belongings are lost or damaged – and therefore help to maintain your home’s level of comfort.
Alternatively, you will pay lower premiums if you opt to take out less extensive cover.
Balancing the risk and costs can be fairly tricky, especially considering the variety of personal belongings and the many potential attendant risks. For this reason, it can be tremendously helpful to consult an insurance broker who will examine your personal situation and help draw up a household insurance policy that suits your budget.
A broker can also help reduce household insurance premiums by advising homeowners how to manage household risk. Through improving household security, and other relevant measures, it is possible to lower your home’s risk profile and get cheaper household insurance.
Hollard offers quality insurance in South Africa. Speak to a Hollard insurance broker about your insurance needs.
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