Buildings insurance offers you cover for structural damage should your house be destroyed by flood, fire, storms, subsidence, or malicious damage, among other things. Although the law doesn't say you have to have it, it's a very good idea, nonetheless, says Gordon Yuill Director of Wealth Associates Risk n Sure Advisors (Pty) Ltd.
Do I need buildings insurance?
"Buildings insurance isn't a legal requirement, but if you have a bond then it's likely to be a condition of your bank to protect their investment. But besides being able to pay back your loan if your home is totally gutted in a fire, Buildings insurance also gives you the peace of mind that you will personally be adequately covered." He said.
Do I have to get my buildings insurance from my bank?
Yuill advises that this use to be the case in the past but no longer. Most banks will still include their in-house insurance proposal as part of the package, but you're under no obligation to take it as conditional selling is no longer legal. Economically the bank has a personal stake to do right by the bank. The in-house insurance subsidiary let's be honest is an extension of the bank. Your interest may not necessarily be aligned when it boils down to their profitability This is apparent on the more frequent but less expensive structural claims as borne out by the sheer number of complaints on Hello Peter.