The rise in interest rates, rolling load shedding and increases in the cost of living have put a strain on the disposable income of South African consumers, according to Attie Blaauw, head of Personal Lines Underwriting, Santam.
Blaauw said: “Owning a home comes with risks, and to get a home loan the banks insist you have adequate cover on the property. So, you need to ensure your home insurance works for you, and you get the most value out of it.”
Blaauw shares tips on how to get the best insurance and how to maximise it:
Budget for potential rate hikes
Blaauw said that when interest rates rise, bond repayments on your home may also increase.
People can avoid the financial strain by building a reserve of savings or flexi bond when interest rates are more favourable or lower so you will have enough funds to cover any increases that may arise over the years.
Save costs with combined insurance
According to Blaauw, some insurance providers offer insurance bundles that cover your building and car combined which may work out to be more affordable than paying for three separate insurance products.
Shop around for affordable home insurance
Even if you have insurance, people should re-evaluate their insurance and compare quotes from different companies to look for more affordable home insurance options.
“You’re not obligated to stick with the original insurance company, even if it’s the one provided by the bank who gave you the loan,” Blaauw said.
Make sure that your insurance cover evolves
As changes happen in your life like downsizing your car or moving to a new home it’s important to adjust your insurance coverage accordingly.
By adjusting your insurance cover you might find that your monthly premiums become more budget-friendly and personalised.
Speak to your insurance broker
If you are having a tough time affording your home insurance premiums, don’t hesitate to contact your insurance provider to see what your options are.
Your insurer might be able to offer you a more affordable policy or give you advice on how to reduce your premiums.
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