The things you must know when you claim for your building on your Personal insurance policy.
Your home is exposed to numerous potential risks every day, and you may need to submit a claim against your insurance policy. Don’t let unfortunate events find you unprepared.
Familiarise yourself with your policy wording and the claim process should you need to claim before disaster hits.
What is household (building) insurance, and what does it cover?
Household insurance provides financial protection for your building or dwelling.
It is insurance that covers losses and damages to your home.
As a homeowner, having building insurance on your insurance policy is essential. You want to ensure that any structural damage is repaired in order to prevent further damages to your property.
A building section of your insurance policy offers coverage on an “open perils” and “named perils” basis.
- An open peril provides coverage for all losses except those expressly excluded.
- A named-peril provides coverage only for those perils listed in the policy. For example, fire, lightning, storm, and wind.
Building cover usually covers exterior and interior damage. This includes any loss or damage to your property assets. Even injuries that arise while on the property can be covered.
Liability cover can also cover accidental damage to another person’s property.
Standard household insurance policies have a liability limit. This is the amount of cover you have, should an incident occur. This amount is outlined in your policy documents. It is essential to know before claiming how much you are covered for in the event of a loss. This section will come into effect only in the event that the person claiming will NOT be claiming against another policy or fund.
Any maintenance or wear and tear related issues will not be covered under your domestic policy.
What do you need to know when submitting a claim against your household insurance?
The claims process begins, after you’ve suffered a loss or damage, and alerted your broker that you need to claim for your building.
Contacting your broker is the first step, which you should do as soon as possible. It is always advisable to get the claims process underway, even if you’re uncertain about the extent of the damage.
For instances like theft or burglary, report the matter to the police as soon as possible. The general rule of thumb is within 24hrs of the incident. This helps in that you do not forget any small details that may come in handy later.
Remember evidence is crucial when submitting a claim;
- Take images of the damage
- Write a detailed report
You can include details leading up to the event of a loss. The insurer always requires proof of the damage or loss. This may include;
- original receipts and original police reports
- If applicable, valuation reports and medical certificates
- Or multimedia footage of the property and the result of the event
Make a habit of keeping an up-to-date asset registry. This helps you in assessing your losses in the event of a loss. Also, keep receipts or proof of purchase. Simply put, have proof of ownership of the goods in question, as you might need these when you submit your claim.
Keeping tabs on your property helps to expedite the claim process. This facilitates seamless and speedy reimbursement.
Depending on your coverage, you might be required to pay an excess. This is the “first amount payable” for the insured. An amount you will pay when submitting a claim on your policy. This is required to be paid before any work can be done.
Know and understand your policy and the limits of your policy as set out in your policy schedule. If unclear, as your broker to highlight these for you.
Familiarise yourself with your policy documents. Pay attention to the details, especially the exclusions stated in your policy. You don’t want any surprises when you want to claim. Read the fine print and ensure you comply with the terms and conditions.
Once your claim is assessed by an assessor, and it is accepted, a claim specialist will be assigned. This person will estimate the cost to bring your property back to a livable condition.
The insurer will then calculate the value of your approved claim, and the benefit, as stated in your insurance policy.
Remember, there is a legal obligation to purchase building insurance when taking a home loan. If your house is bonded, the lender always requires that you take out a comprehensive insurance policy that covers the value of the property.
The cost of household insurance depends on what it would cost to replace your building. A simple guideline is to purchase enough coverage to rebuild your home.
- Note the cover you need is limited to the amount required to rebuild your home and does not include your contents.
In case of an emergency, have your #Rodel4u app handy (download on Google http://bit.ly/355JHaI / Apple https://apple.co/2qVIbcB) and press the 24/7 assist button when you need to claim house insurance and we will contact you.