Stepping onto the property ladder in South Africa can feel a bit like diving into the deep end without swimming lessons. Fear not, first-time bond applicant, as we’re here to untangle the knots of confusion and arm you with what you need to know about insuring your buildings.
Choosing your own buildings cover
There’s a rumour on the streets of SA, and no, it’s not about a tiger roaming free in Johannesburg. It’s the whispered question of first-time bond applicants: ‘Can I choose my own insurance for my home?’ To which we answer with a resounding, ‘Yes, you absolutely can!’
Selecting your own insurance is like choosing your own adventure. You get to call the shots. While your bank might offer you an insurance policy, remember you’re not obliged to accept it. Shop around, assess the competition, and choose the insurance that best suits your needs and budget.
Insurance is my new best friend
You might wonder, ‘Do I really need insurance?’ The answer, if you’ve taken out a bond on your home, is ‘yes’. Your bank will insist on it. (More on that below.)
We can also throw a hypothetical curveball at this question. Picture this: You’re peacefully sipping rooibos tea when suddenly a storm turns your new home into a waterfront property without the luxury price tag. Or maybe it’s not mother nature causing havoc, but a burst geyser playing Victoria Falls on your ceiling.
That’s where your buddy, King Price, steps in. The king’s buildings insurance takes care of the cost of repairing or rebuilding your home should it be damaged or destroyed by unforeseen circumstances. It’s a superhero in a suit, swooping in to save your wallet from taking the knockout punch.
The unbreakable bond: Buildings cover and your bond
The truth is, if you’re applying for a bond in South Africa, having buildings insurance (sometimes called homeowners insurance) is more than just a smart move. It’s a prerequisite. When granting a bond, the bank needs to protect its financial exposure. That beautiful home you’re buying is the bank’s security for the loan it’s giving you. If something happens to the house, the bank wants to ensure it doesn’t end up holding the short end of the stick.
The catch? You need to have this insurance in place by the time you take possession of your home, not when you start hosting impromptu indoor rain parties courtesy of the wind giving your roof wings.
Embarking on the journey of your first bond application in South Africa might seem daunting, but remember, every homeowner has been in your shoes. With the power to choose your own insurance for your buildings and knowing why it’s important, you’re ready to conquer the bond application process.
Now that you’ve got the lowdown on why buildings insurance is a must, why not take the next step? Get a commitment-free quote from King Price today. Because when it comes to your castle, King Price has got you covered.
