Understanding your home insurance policy

Momentum Insure

9 MIN READ

Getting home insurance gives you the peace of mind of knowing that your property is financially protected during unforeseen events - but pay attention to the fine print! Understanding a short-term insurance policy's terms and conditions (Ts & Cs) can save you from nasty surprises like extra fees, rejected claims, or cancellations.

If the jargon feels daunting, start with our guide to understanding your insurance contract. We break down the complex insurance jargon with explainers and tips to help you avoid common pitfalls when choosing the right home insurance and logging a claim.

Your standard short-term insurance terms and conditions – explained!

Know what to look out for when choosing home insurance to get the most out of your policy and understand the meaning behind some of the common terms.

The cost of your premiums

Your premium is the monthly amount you pay to keep your policy active and maintain cover. The cost of your home insurance premiums is influenced by:

• Where you live
• Your property's value
• Condition of your property
• Cover you require
• Your claims history

Your excess amount

Your excess is the initial amount you pay toward your claim. Choosing a higher excess can lower your premiums - but play it smart to strike the right balance.

Look out for exclusions

Your insurance policy has exclusions you should be aware of— certain events and circumstances aren’t covered, even if they lead to loss or damage. Typically, insurers won’t cover issues resulting from:

• Wear and tear
• Gross negligence
• Poor workmanship

These details are outlined in the Ts & Cs, so take a moment to review your policy. That way, there are no surprises!

How you are compensated for a claims settlement

Claims settlements are based on insured and replacement value. If your items are worth R400k but only insured for R200k, you'll only be compensated for 50% of your loss. So, save on Kleenex!

How to avoid common home insurance mistakes

Use these tips to prevent the risk of being over and under insured.

Boost your home security to give you peace of mind

Securing your home is important to help in reducing the risk of harm, theft, loss and damage. Take steps to make your home safer by installing:

• Alarm system
• A security gate
• Security cameras

Avoid the insurance impact of gross negligence and poor workmanship

Changes to your home often mean changes to your policy. Whether you're planning renovations or making repairs, keep your insurer informed so your cover remains secure. Insurers won’t cover damages resulting from poor construction or materials. To stay protected, always hire reputable contractors and never compromise on quality.

Ensure your home insurance policy covers fire and water emergencies

Unforeseen events, such as wildfires, accidental fires, burst pipes, leaks, and floods, can come without a moment’s notice and may cause severe damage or loss. If your home becomes uninhabitable, your insurance can cover the cost of temporary accommodation.

Don’t forget to add home contents cover

Your home insurance (buildings) policy only covers the physical property and all its fixtures- including walls, doors, windows, light fixtures, gates, etc. Home contents cover ensures that all your electronics, furniture, clothing and other valuables in the home are covered in the event of loss or damage.

Always provide accurate information

To keep your cover valid and avoid any issues with claims, it’s important to act in good faith by providing honest, accurate information when applying for a policy, updating your policy and submitting a claim.

Understanding the fine print on your home insurance policy ensures proper cover when you need it most and can help you save on premiums and manage the risks related to your claim. If you’re unclear on the Ts & Cs for a short-term insurance policy with Momentum Insure, you can get in touch with our insurance experts for a thorough explanation.