Africa-Press – Eswatini. With over 1000 homes having been damaged by the recent hailstorm Eswatini Royal Insurance Corporation (ESRIC) General Manager, Zama Ngcobo says contrary to popular belief, home insurance is very affordable and gives one peace of mind.
Ngobo in a interview said despite popular belief ESRIC house owners covered houses across the country including rural and urban areas.
“It is affordable, for example, a house worth E1m has premiums worth E3 000 per annum,” revealed Ngcobo.
He cited that ESRIC also had affordable rural home insurance that targeted low-income earners less than E5 000.
He further indicated that pensioners were also catered for at affordable rates of E17.50 per month in premiums that can cover up to E50 000.
“The rural house owners product is structured such that it is on a first-loss basis which provides the client with a cover that does not cover the whole value of the home but it gives the client the opportunity to choose the cover amount. The first loss basis structure ensures that the product is affordable,” he said
Ngcobo added that the houseowners policy cover was based on the reinstatement value.
“The definition of buildings under a houseowners policy includes all structures on premises including outbuildings, unless some or one of the buildings is specifically defined to be covered,” he said.
The GM said, mainly covered losses were due to fire, lightning and explosion, storm, wind, water, hail, earthquake. Others are bursting or overflowing of water tanks apparatus or pipes, accidental impact on buildings, theft or attempted theft, Riot and civil commotion.
“These is a separate insurance policy called house contents insurance which is based on replacement value.:
such items should be insured under all risks insurance since they were not stationed on premises but can be carried along from place to place by the owner
Houseowners policy further has a liability extension which covers any sums, up to a limit of E2 million, that the insured is legally liable to pay as owner of the house in respect of third party bodily injury or damage to third party property,” he added.
Ngcobo further highlighted that the insured received benefit in the form of discounts for additional protections such as alarms and 24 hrs security and the policy premium also factors in a discount structure for each year that the insured remains claim free.
Speaking on premium calculation, Ngcobo said calculations were based on the value and the construction type of the property.
“Factors informing the costs is the construction type which can either be standard construction and non-standard,’ said Ngcobo.
On claims the GM said a claim had to be notified formally by the insured and a claim form detailing the circumstances of the loss must also be completed to allow for processing of the claim.
“Ensure your policy is up to date without arrears.
one of the most important things to take note of, is that claims have to be reported as soon as practicably possible after the event and full details must follow shortly thereafter.
A claim can be declined purely because it has been notified outside of the stipulated reporting timeframes, not later than one week after the event,” he said.
Adding Ngcobo highlighted that it was wise to keep ones property in good condition as insurance did not cover maintenance.
A product for the low and pensioners
The ESRIC Rural Home Owners is targeted at people who;
n Earn a maximum of E5 000
n Pensioned
n Unemployed
Premium per month First Loss Sum Insured
E17.50 E50 000
E37.50 E100 000
E50 E200 000
The premiums are payable through the following modes of payment;
n Cash in any of the three branches Mbabane, Manzini and Nhlangano
n Mobile money
n Eswatini Post office
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