Interest Rate Hikes Impact On Home Insurance |
|||||||||||||||||||||
|
12 June - The recent SA interest rate hikes will mean that South Africans cut back on paying home insurance premiums to save cash, a decision that is hard to fathom when there are many smarter solutions out there if times are tough financially. The latest economic news will have an immediate negative impact on the finances of the average man in the street, and according to a recent interview by a spokesman for Mortgage SA, one of the ways South Africans historically try to ease that cash-strapped feeling is to reduce household and home insurance coverage, or default on those premiums altogether. What is interesting to note is that not all insurance policies are treated equally in terms of their perceived importance. South African car insurance policies remain paid for, by and large, as nearly everyone realises the stupidity of going without motor insurance.But home insurance as well as life insurance policies are strangely and incorrectly viewed as dispensible by many. One could argue that this is due to the fact that buying insurance is done grudgingly in the first place - it's not like you see anything for your money, and for many people (thankfully) policies are paid but never used in terms of filing claims. But the underlying reason is probably that most of us feel those catastrophes won't happen to us. Car accidents or thefts are common and occur all the time. Therefore we need car insurance. But losing one's home to fire or a flood? That's not going to happen to us, or so we argue. The same mindset is in place for unexpected death. It's a tragedy that happens to others so falling behind on that life insurance policy when the budget is breached is no biggie. The truth of the matter is that no one with a family or dependents can be without life insurance, any more than a driver can be without car insurance. And not insuring your home, the biggest possession in your life, is insanely unwise. If you can't find any spare cash and you're finding it impossible to honour your insurance premiums then cheaper policies could provide the solution you need. Direct insurance providers like Dial Direct South Africa offer affordable car insurance and home insurance for the average Joe who might be feeling the pinch as the South African economy comes back down to earth. Related Insurance Articles: * New Home Insurance Policy For Landlords * South African Crime Statistics Cause Concern * Rising Power Outages Impact SA Insurance * Medical Aid Giant Has Ailments Of Its Own * Car Insurance Scams In South Africa Exposed * SA Insurance Study Shows Dialling Direct Is The Future * Old Mutual Posts Strong First Quarter Results * Sanlam Set To Offer Direct Life Insurance 
|
| ||||||||||||||||||||
| 3/14/2010 7:05:31 AM | |||||||||||||||||||||
 |