In the unfortunate event that your bond is lost or stolen, the Bond Protection Plan provides the following benefits: Death: The outstanding bond debt is settled up to a limit of R1. Temporary Occupational Disability (TOD): This insurance covers your monthly bond payment for up to 24 months. The maximum instalment will be the same as an R1 instalment.
What is bond protection?
Your Bond Protector insurance will aid you with your outstanding bond in the event of death, disability, dread disease, or loss of income, ensuring that your loved ones have a place to call home.
What is home owners cover?
There are three forms of insurance available to homeowners. Homeowners building insurance, house contents insurance, and personal valuables insurance are the three types.
Homeowners Building Insurance
Building insurance is another name for home insurance. It is a policy that protects a home’s structure from unintentional loss or damage caused by fire, theft, or natural catastrophes such as flooding.
Other constructions, such as garages, greenhouses, and swimming pools, as well as permanent fixtures around your property, such as bathrooms, toilets, and fitted kitchens, may be covered depending on the insurance carrier.
Personal Liability Coverage is available from some policy providers in addition to the building insurance policy. This is to ensure that property owners are protected from any third-party disputes. The Personal Liability Cover provides financial protection for property owners in the event that a third party files a claim against them for an accident resulting in death, injury, or disease on their property. It also provides financial protection for homeowners in the event of an unintentional loss or damage to the property of a third party.
Home Contents Insurance
While homeowners insurance covers loss or damage to your home’s physical structure, it does not cover what’s inside, which is why Home Contents Insurance exists.
Home contents insurance protects your belongings from loss or damage due by events such as theft, burglary, fire, malicious mischief, and/or natural catastrophes such as storm and flood damage.
Furniture, curtains, home appliances, and apparel are examples of domestic items. Home contents insurance does not usually cover fixed items in your home, such as a tap or an immovable carpet.
Personal Valuables Insurance
Homeowners insurance and house contents insurance are not the same thing. Personal valuables insurance is a distinct policy. This coverage protects any personal valuables that a homeowner might carry or wear outside the home, such as clothing, handbags, laptops, bicycles, or even jewelry.
There are two categories of coverage in the policy: specified and non-specified goods.
The non-specific items policy covers a standard list of common things and will reimburse you up to a particular amount in the event of loss or damage. The specified items insurance lets you to protect your most valuable possessions, such as cell phones and laptop computers, against accidental loss or damage up to the amount stated in your policy plan.
What is a hoc premium?
When you cancel your bond, you must shift the debit order to another account if your monthly premium for house owners comprehensive (HOC) insurance is linked to your home loan account. If you don’t do so, your house insurance may be revoked automatically when your bond is cancelled.
Even after you’ve settled your bond, it’s critical to keep track of your HOC premiums. If you fail to make a payment, your insurance will be cancelled, and your property will be uninsured. This means that if your property is damaged, you will be responsible for the costs.
What does FNB homeowners cover?
This insurance option protects your home’s contents from loss or damage caused by fire, lightning, or explosions. Following forcible and violent access to (or leave from) your premises, theft or attempted theft results in loss or damage to your goods.
What covers property coverage?
Furniture, electronics, and clothing, for example, are examples of personal property. Personal property coverage is usually included in insurance policies, whether you own a home or rent an apartment. After a covered loss, such as theft or fire, this form of coverage helps pay to repair or replace your valuables.
Is bond cover compulsory?
No, it’s not the case. Bond insurance is optional; but, in rare cases, the bank may demand bond insurance to be necessary, in addition to the mandatory building insurance. Bond insurance, on the other hand, ensures that you and your loved ones are protected in the event of an unanticipated event.
What happens to your bond when you get retrenched?
Absa offers both short-term and long-term options, according to Geoffrey Lee, managing executive of home loans. Thozama Mochadibane, head of customer pleasure at Nedbank Home Loans, strongly recommends homeowners to call their bank right away, emphasizing that skipping or short-paying without first making arrangements with the bank can badly effect their credit rating.
- A payment holiday you may be able to skip payments entirely or make partial payments during this time. Absa offers lower repayments for six to twelve months if you have been laid off. Depending on your affordability, these payments could be as low as 25% of your initial monthly repayment. While waiting for a layoff refund, Nedbank clients can put their bond repayments on hold. If you want to pay off your bond with your layoff pay, cancellation figures will be supplied, and the bank will begin the bond cancellation process.
- An extended repayment plan reduces your monthly payments until you can get back on your feet financially. Because your repayments are offset against the interest owed, the overall debt does not grow as quickly as it would otherwise due to compound interest. According to Lee, Absa allows you to extend your house loan for up to 360 months or 30 years.
- The worst-case situation and usually the last resort is to sell the property. Standard Bank’s EasySell method, according to Van der Hoven, ensures that the greatest possible price is acquired for the property and that the bond is settled in order to restore the customer’s credit record. “EasySell has helped over 4000 customers to date,” he claims.
Clients are strongly recommended to utilise the FNB Quick Sell programme to maximize the value of their property and minimise any potential deficits that may come as a result of legal action, according to Buyisile Maseko, FNB’s growth head for the gold (customer) sector home finance division.
According to Mochadibane, the price you earn for your home through the Nedbank Assisted Sales Programme is likely to be significantly more than a sale-in-execution. “After the facilitated sale, Nedbank also foregoes a portion of the shortfall or residual amount,” she adds.
“It’s a possibility for individuals with equity,” he explains, “and the cash can be added to your layoff payout until you can find a new position.”
“However, increasing your debt when starting a new job is not a good idea, especially if you may need to access that equity in the future if the economy continues flat.”
A big benefit of communicating honestly with your bank at the first sign of financial problems, according to Van den Hoven, is that it can help you avoid being blacklisted, which can have a long-term impact on your financial future. He agrees with Gradidge that trying to get money out of your home loan when you’re laid off is a bad idea.
“First and foremost, the NCArequires an affordability evaluation, and you are no longer making an income,” he explains. “Secondly, we do not recommend this choice unless you are certain that your job position is temporary.”
Repossessions accounted for less than 0.05 percent of Standard Bank’s bonded properties, the bank said. FNB was unable to provide exact figures, but stated that the number of repossessed properties where customers have been retrenched had increased.
What does homeowners insurance cover and not cover?
Fires, lightning strikes, windstorms, and hail are all covered by standard homeowners insurance plans. Earthquake and flood damage, for example, are often not covered by homeowner’s insurance.