As a property owner you are obliged to take out property insurance to cover the banks in the event of a disaster that may effect the structure. Some of the eventualities that need to be covered under your property insurance policy would be.

  • Fire, earthquakes or explosions
  • acts of nature like sever wind storms, high seas etc.
  • Protection against burst pipes and geysers
  • Accidental damage kitchen and bathroom appliances or fittings
  • Land subsidence and 3rd party insurance

All of these items effect the value of the property and as the bank has loaned you money against the value of the property, it is a term of the loan agreement that suitable insurance be taken out in order to preserve the value of the property.

Home owners who have a home loan are also obliged to take out life insurance that will cover the value of the outstanding bond in the event of death or disability. It is possible to get life cover if you are HIV positive and will not negatively effect your ability to get a bond. This type of insurance applies to all of those who are sureties or applicants to the bond and must be maintained while there is still a bond over the property.

Home owners insurance which covers personal items like furniture and fittings or any valuables contained on the property is not required by the bond holder but is recommended to home owners. Taking out insurance for personal effects and valuables is very tricky and realistic values of all of the items need to be obtained and updated annually to ensure that you are not over or under insured.