New Home Insurance Policy For Landlords |
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16 July - Hollard Insurance is now offering a new type of South African home insurance, one designed to protect landlords in case they are involved in a legal battle to evict delinquent tenants. But why would a legal battle be necessary in order to evict someone? The answer lies in South Africa's racially charged dark past... In South African history the figure of the landlord is often the villain as he menacingly chases indigenes off their native land. Squatters, by contrast, are sympathetic types who are totally vulnerable and have no recourse to the law. The South African Supreme Court clearly bought into this and passed new laws that make it tough to evict anyone. This means that tenants who have defaulted on their rent and owe landlords money cannot simply be evicted, but instead can initiate a legal process that is long, Byzantine in its complexity, and very very expensive. The defaulting tenant doesn't care because he still gets to live on the property and can't pay for the legal costs anyway. But the landlord could be financially crippled. The solution is a new home insurance policy that is called a Landlord Protection policy. If you own a second property and would like to make a little bit of extra income through rental then this form of home insurance is essential. Hollard offers this product right now but it is expected to become a standard policy offered by all major insurance providers that should also prove very popular. It covers legal fees up to R40k, provides up to three months of rent, and will also pay you one month's worth of rent if your tenant disappears in the middle of the night never to return. There is absolutely no question as to whose side the law is on when it comes to the battle between landlords and tenants - if you're a landlord it would be negligent not to purchase this form of insurance in South Africa. Related Insurance Articles: * Car Insurance Claims In SA Rise Sharply * SA Eagle Now Part Of Zurich Financial Services Group * Insurance Scam In Alaksa Traced To South Africa * AIDS Insurance A Moneyspinner In SA * South African Crime Statistics Cause Concern * Rising Power Outages Impact SA Insurance * Medical Aid Giant Has Ailments Of Its Own * Interest Rate Hikes Impact On Home Insurance 
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| 3/14/2010 7:05:34 AM | |||||||||||||||||||||
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