Importance of adequate building insurance

Cape Town - It is very important to have adequate building insurance, especially when buying a home cash, said Francois Venter, director of Jawitz Properties.

He gives as an example a first time buyer based overseas, who might paid cash for his new property in South Africa.

"When purchasing a property and taking out a bond to do so, it is normally required for the buyer to take out building insurance," said Venter.

"But if you are a cash buyer, you may not even have thought about it."

This type of insurance is there to cover a buyer for natural disasters such as fire or flood damage, as well as for the replacement of a burst geyser.

It can include additional cover, depending on the insurance a buyer already has.

"It is so important to at least be covered for fire and flood, as such disasters can place heavy costs on you if you should ever need to repair, or worse, rebuild your home," said Venter.
 
"Most insurance companies offer this type of insurance and you should shop around for the best quote before you decide which to choose."

He said should such a home owner sell his home one day, he should not forget to cancel the building insurance.

"It won’t automatically be cancelled just because you have sold the property," said Venter.