Don't fall short on home cover

Home owners grudgingly fork out for insurance every month consoling themselves that at least if something does happen, they are covered. However, many don't realise that they are, in fact, under insured and, unfortunately, most will only find out once it's too late. While there is a mortgage, banks ensure that there is insurance in place for at least the amount of the bond, but once the bond has been repaid, many homeowners forget to keep their eye on the ball in this aspect. It is important that owners understand that they need to ad equately insure for the replacement value of the building, not just the market value, plus all the contents and they must specify items which are valuable. Selecting the right policy and ensuring one is adequately covered is not always as simple as it may seem. First you need to establish which components are considered part of the building. Many people don't realise that in order to be adequately insured, the following elements should also be accurately valued: fixtures and fittings, fixed rec reational and ornamental structures, paved and surfaced areas, boundary and other walls, gate posts and gates including all their mechanisms. In order to enjoy the benefits of full cover, it is important to keep your property evaluation up to date and to advise your insurer when any alterations or renovations are done. The insurer will increase your premiums annually, taking inflation and building material costs into consideration. Jill Lloyd is an area specialist for Lew Geffen Sotheby's International Frans Labuschagne is director of FJL Consultants