Tag Archives: home owners insurance

It’s often the little things that matter…

One of the “compulsory” forms of insurance that people with bonds have to have is Home Owners Insurance (HOI). This is insurance that covers the cost of replacing the building if it is destroyed through things like fire and floods. Usually the bank that provides the bond also very kindly arranges this insurance and the unsuspecting home owner signs the policy document along with all the other bond documents. There are at least two huge problems with this Continue reading It’s often the little things that matter…

Stop wasting money…

If you have a bond on your property, please make sure that you are not paying the home owners’ insurance premium via your bond account. The banks are very quick to set this up for you because it is good for them as the premium will never be rejected but the reality is that you will end up paying interest on this premium for the full term of the bond. This could result in you paying thousands extra – what a waste of money.
Rather, make sure that the premium comes off your normal current or savings account. You would also be wise to get a comparative quote from your short-term insurance provider. The banks are notoriously uncompetitive when it comes to this kind of insurance and while you are required by the bank to have Home Owners’ Insurance, you are not compelled to take it out through the bank providing the bond.