The fact is that until such time when you’ve scraped enough cash together to pay off your loan, your dream home will, in fact, belong to the bank. This being said, it does make sense that they’re going to need some sort of reassurance that 'their property' will be properly covered if worse comes to worst. They’ll need to know that the building is covered sufficiently so that the cost of rebuilding or repairing the structure will be covered in full.
What you need to know about buildings insurance:
Your bank will require that you take out comprehensive buildings cover to insure the structure of your home and your outbuildings at its current replacement value.
They’ll specifically ask you to take out cover against damage caused by landslip (i.e. subsidence).
But - you don’t have to accept the insurance option offered by your bank. Insure with the insurance company where you know you’re getting the best value for your money.
You’ll enjoy subsidence cover without paying one cent extra: The required subsidence cover is already covered as standard with our comprehensive buildings insurance product. So, again – you will save on your premium without even trying. We also offer optional cover to take care of damage to geysers and water pipes that were caused by wear and tear, decay or rust. This is available to you at a small additional premium, but definitely something you won’t want to be caught without.
No. The bank requires you to have buildings cover in place, irrespective of the value of the bonded property.
No. The body corporate will be responsible for taking out insurance for all buildings in the complex. Any insurance costs will already form part of your monthly levy.
The moment you cancel your bond, the bank will no longer require you to have buildings insurance in place and you can cancel your insurance if you want. We suggest, however – that you continue cover with us. That way, your building won’t be left uninsured.
No. You enjoyed cover for the entire period when you had your home loan in place, so we won’t be able to give you all of your paid premiums back. However, as is the case with all of our products, you’ll still receive 10% of your paid insurance premiums back in cash after three claim-free years! Read more about our OUTbonus.
Not always. Although life cover is not always required by the bank, it might not be such a crazy idea to get a quote to see how much this will cost you. When you have life insurance in place, the outstanding amount owed to the bank will be settled if you pass away unexpectedly. If you have dependents, we strongly recommend you get life insurance in place. Click here to request a quote on life insurance or simply give us a call on 08 600 60 000 and we’ll get you sorted in no time.