Homeowner's Comprehensive Insurance FAQs

A home is one of the most precious assets that a person possesses. A total loss of your property, as a result of one of the insured perils, could result in you no longer being able to live in your home, leaving you in financial distress. Homeowner’s Comprehensive Insurance is therefore extremely important and affordable for the cover provided, giving you peace of mind if you suffer an unfortunate loss.

• The Absa process is seamless. We will provide you with an insurance quote for your property, with your home loan application. 

• The insurance premiums are affordable and if you choose, the premium is collected from your bond account, ensuring that they are consistently paid, and that the insurance cover remains in place. 

• You will have full comprehensive insurance cover. 

• Our claims process is hassle-free, allowing you to register your claim digitally via the Absa website, or even from your Absa Banking App.  

• Our approved service providers offer a guarantee on their workmanship, which ensures a high-quality work ethic at the time of a claim. 

• Some of our many additional benefits are listed below: 

  o    Accidental Death cover up to a maximum value of R12 500. 

  o    Alternative accommodation if you and your family are displaced as a result of an insured event. 

  o   Loss of rental income if your legal tenant is displaced as a result of an insured event.

          Additional benefits are subject to the limits as stated in the policy wording. 

As a homeowner, you must ensure that the construction of the home that you are intending to buy or build is of a high quality and built to the SANS building regulation standards. It is advisable to get input on the structure, soil that it is built on, and if it adheres to the local authority and minimum building requirements from a relevant professional/person in the know.  

The excess is the first part of the cost of any claim, for which the policyholder is responsible. The amount of the excess for which you are responsible will be stipulated in your policy schedule/document. You will be required to pay your applicable excess to the service provider that we appoint before they start with the repairs.

If we reject your claim, we will notify you and provide a reason why the claim is not payable in terms of the cover provided for under your policy. If you disagree with the rejection of your claim, there is a dispute process outlined in your policy wording for you to follow in submitting your dispute to Absa Insurance Company.

Salvage is the damaged or undamaged items/portion of a claim that we settle. We have the right to remove and keep possession of such salvageable items. As an example, if someone bumps into your gate and damages it, we have the right to remove the damaged gate after we accepted your claim and replaced the gate.

When an insured property is repaired, we are not always able to match materials to those in place before the repair. We will, however, match them as close as circumstances reasonably allow. We cannot be held liable to replace materials if they are unable to be matched with identical replacement materials. As an example, if a pipe bursts in your home and causes damage to your orange tiles, which have subsequently been discontinued, then we will be liable for the cost of matching them as closely as possible. We might choose to pay you the cash value of the repairs for you to use towards replacing the tiles with a product of your choice.

Not all eventualities are covered by your insurance policy and it is important for you to understand what is not covered. Here are some examples of what is not covered:

• Damages that existed before you insured the property. 
• Loss or damage due to defective construction. 
• Damage due to wear and tear and breakdown (such as your gate motor or garage door motor that just stops working without any insured event happening).  
• The cost of refilling your swimming pool after a valid loss or damage occurring. 
• Maintenance-related damage to the property, or damage as a result of maintenance not being carried out at the property. 
• Consequential loss. 
• Loss or damage to illegally occupied buildings (this is a building occupied by people without your permission).  
• Damages to your property if it is rented and you do not have a valid rental contract/agreement in place at the time of the loss or damage occurring. 
• Loss or damage to properties that have been vacant/unoccupied for more than 60 days, or where they are illegally occupied at the time of the loss or damage.

It is necessary for you to carefully read the policy terms and conditions in conjunction with the policy schedule as these are just a few of the exclusions on your policy and these documents provide the full details of what is covered and what is not covered, the excess structure (first amount payable) and cover limits in line with the covers provided and excluded.