A few months ago, a Sunday Times journalist contacted us. It was during the time of the Knysna fires when many were anxious about fire hazards and seeking advice on insurance from good brokers. She had 4 questions for us relating to building insurance and fire coverage that I’d like to share with you.
Basically,” building” insurance covers structures fixed to the ground including, pools, driveways, walls and fences, whilst “contents” are considered to be anything movable on the premises. These terms are clearly defined in the policy booklet.
It’s sufficient for the bank’s interest, and will cover major catastrophes. There are little extras or extensions that a bank won’t include in the policy that a broker would. Readers should ask their broker if extensions like “accidental damage” and “power surge” are included. This being said, everyone has different needs, so I would advise readers to have a proper needs analysis conducted by a trustworthy broker who is reputable, experienced and, most importantly, honest. I firmly believe that special care should be taken when insuring against risks of a catastrophic nature.
It would, but policy wordings differ which means the cover (ie T&Cs) will vary, but in general terms, yes.
Basically, a simple formula is size of the house in square meters multiplied by a cost per meter, then you’ve got to add in items like pools and fences. The cost per meter depends on the location and nature of the buildings. This varies for everyone, so ideally one should consult with a professional appraiser in this regard.