1. SELECT A STRONG INSURER
Always ask about the company. When losses occur fast, fair claims service is a must with homeowner's insurance. The best way to find a reputable broker is a simple referral from a friend who has received good service from their broker.
2. DON'T GUESS HOW MUCH COVERAGE YOU MIGHT NEED
The cost of rebuilding your home might exceed your estimate. Consult your agent and determine how much you need to rebuild from the ground up.
3. DON'T UNDER-INSURE YOUR POSSESSIONS
Saving a few Rand up front could cost you a significant amount of money at a time of loss.
4. REPLACEMENT VALUE
Unless you insure for the replacement cost of household possessions, you will be paid only purchase price, less depreciation, for items burnt or stolen.
5. CHOOSE AN APPROPRIATE DEDUCTIBLE
The higher the amount of a property loss you elect to "self-insure," the lower your premium is likely to be.
6. SCHEDULE VALUABLE ITEMS
Items such as art, furs, antiques and collectibles all have coverage limitations on a policy. Make sure you have the appropriate coverage; double-check with your agent.
7. ASK ABOUT "OFF-PREMISES" COVERAGE
Don't take a chance with expensive equipment. Make sure your insurance covers possessions in transit.
8. MAKE SURE YOU GET PROPER "CREDITS"
Many policies offer discounts. Always check for the discounts offered.
9. FLOOD INSURANCE
Neither is covered under the standard homeowner's policy, If you live in an area that is vulnerable to flooding, make sure you get coverage.
10. DON'T INSURE UNNECESSARY ITEMS
If you are careful, take a few risks. Some items cost a lot to insure (like bicycles and cameras). Find out how much you might save by leaving them out of your policy and reduce the risk when it comes to these items by keeping a close watch on them.