Insurance of Your Assets

A homeowner's comprehensive insurance policy is compulsory if you have a home loan. The rates charged include South African Special Risks Insurance (Sasria) and limited subsidence and landslip cover.

Insurance cover is automatically arranged by the bank when your bond is registered. The property is fully insured for the duration of your bond agreement as laid down in the Insurance and Usury Acts with an insurer chosen by us.

On the anniversary of your policy the insured value of your private dwelling will be increased by an inflation percentage linked to the building cost rate of inflation, calculated by the bank. This increase does not relieve you of the responsibility of ensuring that you have adequate insurance.

Your property is insured against damage and destruction caused by the following:

• Fire, lightning or explosion
• Storm, wind, hail, snow or flood
• Malicious damage
• Earthquakes
• Bursting, leaking or overflowing of water tanks, including geysers or fixed oil-fired heating apparatus
• Theft
• Impact
• Accidental breakage or collapse of antennae, masts or satellite dishes
• Accidental breakage of fixed glass, mirrors or sanitary ware
• Accidental damage to water, sewerage, gas, electricity or telephone connections
• Limited subsidence and landslip
• Riot and strike insurance (Sasria)
• Public liability limited to R10 million

Summary of the extension of cover:

• Building operations - this covers building materials and fixtures and fittings whilst new building work, structural alterations and additions are being carried out.
• Reasonable costs incurred for fire-fighting. We cover you for the costs of fire-fighting that are reasonably and necessarily incurred.
• Public authorities' requirements. We will pay up to 20% of the sum insured on the building for additional costs necessarily incurred by you as a result of loss or damage due to an insured event in respect of:
• Architect's, surveyor's or consulting engineer's fees
• The demolition of the building, debris removal or erection of hoarding during rebuilding operations
• Your complying with any building regulation or any government, provincial, municipal or local Act or ordinance or public authority requirements
• Rent. If your loss results in the dwelling becoming uninhabitable, we will pay you up to 20% of the sum insured on the building for the time reasonably needed to make the dwelling habitable.
• Tenants. This cover will not be invalidated by an act or omission of your tenant provided that you notify us as soon as it comes to your attention.
• Electronic equipment forms part of the permanent fixtures and fittings which include automated gates and doors, burglar alarms, fixed close circuit TV equipment and fixed telephone equipment (but not computer equipment).
• Water-pumping machinery (maximum R2 500). If fixed filtration plant or water-pumping machinery (not automatic pool cleaners) in domestic use are accidentally destroyed or damaged (not wear and tear) we will pay for repairs or replacements.
• Removal of trees. We will pay up to R2 000 for the removal of trees that have fallen on and caused damage to your property.
• Safeguards and emergency repairs. In respect of loss or damage covered by this policy you may undertake emergency repairs to your property up to R2 000 to restrict or prevent further damage.
• Security guard. Following an insured event of up to R2 500 on any one claim we will cover you for costs reasonably and necessarily incurred in employing a security guard.

Basic excess

This amount will be stipulated in you policy documents which will be forwarded by the bank.

Insurance premiums

Your premiums are calculated based on the type of construction and are automatically debited to your home loan account.

Losses not covered

• Structural defects or any pre-existing damage to private residences and domestic outbuildings.
• Wear and tear, rust, gradual deterioration, damage caused by vermin or insect infestation.
• Loss, destruction or damage caused by defective workmanship, materials and design.
• Damage to geyser valves and all pipes and other water apparatus (excluding geysers) caused by bursting or leaking.
• Cracking of the dwelling unless resulting from an external cause which is not excluded.
• Consequential or indirect loss of any kind including the unavailability of matching materials.