PROPERTY insurance protects property owners against financial loss or damage caused by covered events such as fire, theft, vandalism or natural disasters. It can cover homes, commercial properties and personal belongings.
What are the frequently asked questions of property insurance? Swaziland Building Society’s Senior Mortgage Officer, Phindokuhle Dlamini gives an account of enquiries that are regularly made on the issue.
Q. Is insurance compulsory on a property loan?
A. When the Swaziland Building Society gives a customer a mortgage loan, it becomes com¬pulsory that an insurance policy be taken.
There are two types of insurance policies that customers are encouraged to take. The first one is the life insurance, which is taken to safeguard the mortgage should an unfortunate incident of death occur. This is so that the beneficiaries of the property owner are protected in such an eventuality.
The second type of insurance covers the property itself, providing compensation to the customer in the event of any damage. This ensures that necessary repairs can be carried out if such an incident occurs.
Q Is the insurance cover expensive?
A. The insurance cover is not expensive and in fact, having an insurance cover is an advantage because it protects the customer should anything happen. The insurance policy is collated with the amount of the loan. The life cover for instance is exactly equal to the loan that the customer has taken and in the event of a death, then the insurance settles the balance of the loan.
In the case of the damage to property an evaluation of the damage is made and the evaluation report is the one that is used to determine the amount of money that the customer must be compensated.
Q. How does SBS deal with joint insurance applications such as in the case of spouses?
A. If the property loan has been taken as a couple, then the insur¬ance policy covers both individuals. This is so that the burden of the mortgage or debt does not rest on one individual.
What is considered is the ratio of the loan that each of the individuals has taken.
For instance, if each one of the couple has taken a loan of E500 000 for a property worth E1 million, then they are covered accordingly.
There is also the option for each spouse to be fully covered for the debt.
Q. What process must be followed in order to access the insurance in the case of a bereavement?
A. Once the client is deceased, family members have to provide a copy of the death certificate and the identity document to the SBS who will arrange all the important aspects of insurance.
In the event of property damage, customers are required to inform SBS within seven days and provide supporting documents, including photos of the damage, repair quo-tations for materials and labour, as well as the required KYC documents.
Dlamini said: “These FAQs provide a basic overview of property insurance. Always consult with your SBS Mortgage Consultant to better understand the specifics of the policy and what coverage is best suited to your needs.’’ For further assistance, customers are encouraged to contact the SBS Mortgage Department at Asakhe House in Mbabane at 2405 6119, email mortgages@sbs.co.sz or visit their nearest branch.
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