Insuring your home an absolute necessity

For the majority of South Africans, a roof over one’s head is not only essential, but is one of the most cherished investments one ever embarks on. At the same time, owning a home also implies several financial obligations, and the necessity of taking out Home Owners Insurance is one of those essentials.

FNB Home Loans is encouraging its customers who, according to the bank’s records, do not have Home Owners Cover (HOC) in place, to ensure cover is taken out as a matter of urgency. It is also a prerequisite for all customers as part of their home loan agreement.

“If any of our customers do not have the necessary Home Owners Cover in place, we implore them to exercise their rights in terms of the Financial Advisory and Intermediary Services Act to procure the cover of their choice and provide us with the necessary insurance policy documentation,” says FNB Home Loans spokesperson Jan Kleynhans.

Although South Africa is not prone to natural disasters, houses are still exposed to damage from fire, flooding and other household problems, including burst geysers and plumbing disasters, not to mention the ongoing vulnerability to vandalism.

“Home Owners Insurance is absolutely essential since it covers all potential damages and losses to property that are a result of fires, flooding or any other natural disasters,” says Kleynhans.

FNB Home Loans is granting all its customers without insurance a 30-day period in which to furnish the bank with proof of insurance. In the event that no insurance policy is in effect, FNB is encouraging clients to apply for Home Owners Cover through their own insurance companies.

FNB Home Loans is offering the services of OUTsurance, part of the FirstRand Group, to any clients who do not have existing insurance cover. Alternatively, clients may also call FNB Insurance Brokers on 0860 328 328 for a quotation, or may request the same home owners cover from their existing insurance company.

It is important to note that should any customers not be able to provide FNB with the required policy documentation within the allocated time, the bank reserves the right to take out insurance in the bank’s name and to charge such insurance to the customer’s bond account until such time as the customer adheres to the bank’s request.

Should simultaneous insurance take place due to a delay in the provision of this proof, FNB Home Loans will reverse all costs of its insurance.