What does buildings insurance cover?

Buildings insurance offers you cover for structural damage should your house be destroyed by flood, fire, storms, subsidence, or malicious damage, among other things. Although the law doesn't say you have to have it, it's a very good idea, nonetheless, says Gordon Yuill Director of Wealth Associates Risk n Sure Advisors (Pty) Ltd.

Do I need buildings insurance?

"Buildings insurance isn't a legal requirement, but if you have a bond then it's likely to be a condition of your bank to protect their investment. But besides being able to pay back your loan if your home is totally gutted in a fire, Buildings insurance also gives you the peace of mind that you will personally be adequately covered." He said.

Do I have to get my buildings insurance from my bank?

Yuill advises that this use to be the case in the past but no longer. Most banks will still include their in-house insurance proposal as part of the package, but you're under no obligation to take it as conditional selling is no longer legal. Economically the bank has a personal stake to do right by the bank. The in-house insurance subsidiary let's be honest is an extension of the bank. Your interest may not necessarily be aligned when it boils down to their profitability   This is apparent on the more frequent but less expensive structural claims as borne out by the sheer number of complaints on Hello Peter.

Should I go it alone to change my building insurance?

"Although you free to choose your own alternative and to move your insurance the bank can still reject your choice of buildings insurance if they don't feel it offers adequate cover to protect their security. If you are representing yourself, you are going up against a well-oiled machine whilst you still “personally vested".  The old proverb "He who represents himself [TRULY] has a fool of a client" is not just limited to lawyers. The ability to “emotionally detach" oneself from a situation is often lost, and what would normally be rational and objective judgment are replaced by feelings of anger, worry, fear, and stress. And that is true for almost everyone, “professional" or not." Says Yuill.

Make use of our services to help you negotiate and to place your buildings insurance. Not only will you'll have a professional with the training and education but the skill to use it in an objective and meaningful way to make the difference to you so that your interests are also aligned in protecting your investment.

Courtesy of Gordon Yuill Director of Wealth Associates Risk n Sure Advisors (Pty) Ltd | gordon@wealthassociates.co.za