By Tkay Nthebe
It’s often said that “home is where the heart is” and it honestly takes a lot of time, sacrifice and effort to acquire the perfect furniture (bed, fridge, couch and smart TV) that make your house a home. If like me, you also love your gadgets, for example a laptop, camera and smart phones; the thought of losing your most valuable possessions due to accidental damage or theft can be devasting.
Have you ever thought about what would happen should someone break into your home (whether you are renting or you own the house) and steal everything you’ve worked hard for?
Mosa lives in a two-bedroom duplex in Naleli Maseru with her two sons and has worked very hard to make it as comfortable as possible. Mosa has spent a lot of money, including her bonus and side hustle money over the last 2 years to purchase the following items with the hope of creating a safe haven for herself and her two sons:
On Friday evening after a long day at work, Mosa comes home to find the door wide open and the house empty because of a burglary. In that moment, Mosa realises that she had lost everything– EVERYTHING to the value of LSL73,000.00 that she had worked very hard for.Not only is she facing the financial blow because she has to start over again, but she no longer has a safe haven for her sons.
What could Mosa have done differently to avoid the financial blow?
By taking out house contents cover, Mosa could have transferred this risk to an insurance company in exchange for a premium (paid annually, quarterly or monthly) to minimise the financial blow. House contents cover is an insurance policy that covers you against burglary, potential damage caused by a burst geyser, impact to the building, fire or other natural disasters. You can apply for house content cover whether you own your own home or renting. House contents policy also provides you an opportunity to cover your gadgets, jewellery, cameras and clothing under an All risks cover.
As discussed in my previous article titled “Creating an exciting spending plan”, the premium for this type of insurance cover should form part of your budget. Like Mosa, ensure you have peace of mind, knowing that your most valuable possessions are protected should the worst happen. Risk management is a critical part of our financial plan, let’s take the necessary measures, do the “ncaa thing” and avoid the “Eish” moments.
