Why It Is Important To Buy Homeowners Insurance Cover

Botswana Insurance Company (BIC) has advised homeowners to protect their houses against core perils that inflict damage on the properties. The country’s largest short-term insurer said therefore buying or building a new house is a decision that affects people’s personal finances and comes with a lot of responsibilities, hence the need to ensure that all the necessary measures are in place including security, maintenance and insurance.

BIC MD Johann Claasen
BIC MD Johann Claasen

“Houseowners insurance, also known as Homeowners insurance essentially provides financial protection against unforeseen events such as natural disasters,” stated the insurance company.

BIC revealed that houseowners insurance covers your house; including outbuildings, fixtures and fittings, perimeter walls and pools pavings against loss, destruction or damage arising core perils. The core perils include; fire, lightning, explosion, storm, wind, water, snow, bursting, leaking or overflowing of apparatus, theft, impact, rent and liability.

However, houseowners insurance policies may differ from one insurer to the other depending on the add on’s or extensions but the damages caused by core perils are always covered because they cause the most significant damages. BIC added that there are special exclusions to the cover, for example, the company will not be liable for the first P1 000 of every claim arising from a deliberate or willful act (including theft) after the dwelling has been vacant for more than 60 consecutive days.

“The houseowners policy protects you against huge financial setbacks you may suffer in case your house is destroyed or damaged by fire, or other natural calamities. If anything happens to your home, you won’t have to start building from your pocket or bank loans again, the insurer will compensate you by either payment or reinstatement or repair.”

Should there be any liability or legal responsibility arising from injuries incurred whilst on your property, homeowners Insurance protect you from such, said BIC. Liability coverage compensates for accidental death, bodily injury or illness or accidental loss or damage to property, up to P1 000 000 for any one accident or series of accidents arising out of one event including costs and expenses.

“It is always advisable to purchase Houseowners and Household contents insurance as a package policy. This means that the policy covers both damage to your property and house contents. The Household Contents policy covers household contents or personal effects you own or for which you are responsible while in the dwelling against perils such as theft, fire, lightning, storm, flood, etc,” advised BIC.

“It is important to note that houseowners insurance is one of the cheapest covers homeowners can purchase considering the huge financial setback one could suffer, with minimum premium starting at only P1500 per annum for a standalone house. Because anything can happen and simply for peace of mind get houseowners Insurance.”