As mentioned previously, if you are taking a bond, your bank will insist on proper Home Owners insurance and most probably a Life Policy ceded to them to cover the bond in the event of your death. You do not however have to use the bank insurance option and may choose your own service provider, which in many cases is cheaper.

The National Credit Act compels banks to allow the consumer free choice as to who provides the homeowners or buildings insurance.  This does not mean, however, that the banks will not do their utmost to convince the homeowner to accept the bank's policy.  

Banks tend to promote their ‘own insurer' because the bank generally owns, or is a shareholder of the insurer or earns a large amount of money from the commissions earned.

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WHAT THE BANK WILL INSIST ON

• The interest of the bank must be noted
• Confirmation of Mortgagee clause
• Confirmation of premium and insured amount.
• Confirmation of SASRIA cover
  
• Confirmation of Personal Liability cover.

WHAT TO CONSIDER?

• Going direct might save you on initial premiums but having a broker fighting on your behalf can mean a lot when the crunch time of claiming arises. The job of those working for the insurance company after all is to save them money and reduce claims.
  
• Has the company been around for some time - if so what is their reputation.
• Check what is specifically EXCLUDED in the offered policy. What are the restrictions?
  
• What increases can you expect? It is one thing getting a cheap start premium only to find yourself overpaying in a few years time. Check if your premium is fixed or if there are automatic increases.
  
• Are there built in premium guarantees if you are unemployed.
  
• What other additional benefits are offered?
  

Drop us an Email is you need a free insurance and policy assessment or quote