Many people believe that having home cover is enough to protect them. You must make sure that when you buy home cover it always includes content cover and all risk cover. Here is a guideline.
Your home is not just where you live, it is also where you keep your most important belongings. Many people believe that having home cover is enough to protect them against theft or damage.
However, this is not always true. Therefore, you must make sure that when you buy home cover it always includes content cover and all risk cover.
What is content cover?
Content cover ensures that you do not feel the cost of repairing or replacing your personal belongings such as furniture, clothes, appliances, jewellery, laptops, and even damaged groceries.
Among other things, these damages can be caused by power surges, lightning storms, theft, burst geysers, fire, or break-ins.
In many cases the cover pays for your domestic worker’s belongings if they were taken or damaged and were in your house at the time.
This cover can even help you pay for alternative accommodation while repairs are being done in your home.
The policyholder can take a new for old value or replacement value cover. New for old cover means that your insurer will pay for the full cost of replacing your belongings with new ones. The premiums for this cover are usually higher.
A replacement value insurance policy covers only the value of your possessions – and most common household items will depreciate each year. Therefore, you need to review your policy regularly to make sure that your cover is up to date.
But will this cover your items if they were stolen or damaged outside of the house? No, and this is when you need to think about all risk cover.
What is an all risk cover?
All risk cover is usually added to your general home cover. Your insurer will pay for the cost of belongings when they are stolen or damaged away from your home. If the item was stolen or damaged outside the house – for instance while travelling – you will receive a payment to repair or replace it.
All risks have two subcategories: specified all risk and unspecified all risk.
With specified all risk cover you need to specify which items you want to cover, and those items must be valued at R1 500 or more.
Whereas with unspecified all risk cover you do not need to specify the items as they could change daily. These can include earrings, sunglasses, and handbags with a value of less than R1 500.
Before you purchase home cover, speak to a reputable adviser to ensure that you are completely covered for all the worst case scenarios.