Looking at the types of insurance products (Part 1)

Life can often throw expensive curveballs but sufficient insurance enables you to protect yourself, your family and your property from unexpected financial losses. There are many kinds of insurance available and in this article we’ll be taking a look at homeowners insurance, personal valuables insurance, legal insurance and income protection cover. Click here to read about vehicle insurance or here for info on health insurance, life insurance and funeral cover.

Insurance for your home

There are two basic types:

  • Building insurance covers you for damage to the structure of your home against damage like fire, theft or natural disasters, and may also include garages, swimming pools etc. This insurance is generally required for a home loan.
  • Household contents insurance covers you for loss or damage to the furniture, appliances and electronics inside your house, in the case of theft, fire, malicious damage, storms etc. Not all policies cover damage caused by load shedding, so make sure you’re covered and if there are any exclusions.

Personal valuables insurance

Many of us carry a lot of valuable property around with us when we leave our homes, like cell phones, laptops and jewellery – this is what personal valuables insurance is for. Unspecified cover is for a list of general items and pays up to a certain amount if those items are lost, damaged or stolen. With specified cover you insure each of your most expensive items separately, like your cell phone or laptop.

Legal insurance

Legal insurance covers you for civil, labour or criminal matters, so that you won’t need to face a heavy financial burden at the same time as dealing with the legal issue. In addition to legal fees for a court case, legal insurance also covers access to legal counselling and advice, as well as help with legal documents.

Income protection cover

Income protection covers all or part of your income if you’re temporarily or permanently unable to work because you’ve become sick or injured. The policy will continue to pay out until you return to work, retire or die, whichever instance comes first. Be aware that income protection policies don’t generally pay out for retrenchment.

There is a lot of variation between different policies and many important choices to make, such as waiting periods and what percentage of your income to cover, so it’s wise to consult a financial advisor first.

Whatever type of insurance you need, make sure to shop around and compare quotes so that you get the best cover you can. Don’t be afraid to ask a potential insurance company questions about their policies and what cover they’ll provide to you. You can also consider getting advice from a qualified insurance broker who’ll look out for your interests.

Did you #LearnSomethingNew?