Buying a house is probably one of the biggest financial commitments you will make as an adult, and for this reason it is important that you do your research before you commit. When you buy a building you will be required to take out insurance, and many people do this with their new or existing bank or building society when arranging their bond. However, this is not a guarantee that you are getting the best deal.
“According to the Centre for affordable Housing in Africa, the average nominal house price in the fourth quarter of 2014 was R1.5 million in the Western Cape, R1.4 million in Gauteng and R960, 000 in the Eastern Cape,” says Derek Wilson, Head of Hippo.co.za, South Africa’s leading insurance and financial comparison website that helps consumers save money by comparing a range of SA providers across financial products such as Car Insurance, Household Insurance, Buildings Insurance, Life Insurance, Medical Aid and more. “Between quarter four of 2013 and quarter four of 2014, the average nominal house price in the Western Cape increased by 15.5%, in Gauteng it increased by 10.8% and in the Eastern Cape it decreased by 6%.”
This indicates that there simply cannot be a “one size fits all approach” when it comes to Buildings Insurance. As the prices of houses fluctuate from one quarter of the year to the next, the value of your house will also increase or decrease substantially and this fact could leave you either under or over-insured.
When it comes to Household Insurance, there is also inflation to consider, which fluctuates every year and in turn will affect the price of replacing the contents of your home with new items should they be stolen or damaged. It is thus of utmost importance to review your Household Insurance at least once a year and adjust your cover accordingly.
“Although it might seem more convenient to take out your Buildings or Home Loans Insurance with the same financial services provider that you signed a bond agreement with, this is not necessarily always the cheapest option,” concludes Derek. “There is no harm in comparing with Hippo.co.za before you buy across the board. And even if you need to change your insurance provider, it really isn’t the admin nightmare it used to be in the past.”
Established in 2007, hippo.co.za is South Africa’s leading comparison website that helps consumers save money by comparing a range of SA providers across financial products such as car insurance, home insurance, life insurance, medical and more. Hippo is free to use and saves consumers the time and hassle of shopping around for the best deal since the Hippo.co.za website instantly retrieves real-time quotes from the different providers using the latest Internet technology. One in two people could save hundreds of Rands per month* on their car insurance alone by using hippo.co.za to compare before they buy or switch to a new provider.
Hippo.co.za makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, is in no way influenced by the fee hippo.co.za charges its partners or any other factors other than the price of the product being compared.
For more information, visit us on www.hippo.co.za, connect with Hippo on LinkedIn, http://www.linkedin.com/company/hippo-comparative-services-pty-ltd/, like us on Facebook, www.facebook.com/HippoSA, and follow us on Twitter @Hippo_co_za and YouTube, http://www.youtube.com/user/hippocompare.
Hippo Comparative Services (Pty) Ltd is an authorized financial services provider (FSP number: 16357).
*Based on 2015 independent market research conducted by Kaufman Levin Associates.
Time for an Open Data Revolution in Affordable Housing in South Africa: http://bit.ly/1K5OtFQ