For many first-time buyers, the journey involves months of securing a bond, house-hunting and navigating the purchase process. But now that the keys are in hand and the boxes are unpacked, it’s time to shift focus to protecting your investment – starting with the right cover, maintenance and risk awareness, says Old Mutual Insure’s Head of Strategic Accounts Molebatsi Langa.

First-time buyers now make up nearly half of home-loan applications in South Africa. While the average age has crept up from 34 to 36 over the past decade, many are still young professionals without dependants – some even buying to rent. Most new homeowners purchase properties priced between R700,000 and R1.5 million.

No nasty surprises

When buying a home for the first time, you need to remember the risks involved, cautions Langa. “You don’t want to move in and then discover something major, like damp or structural cracks, that was simply masked with a fresh coat of paint,” she says.

To avoid this, she recommends getting the necessary certificates and building plans from the previous owner before the sale goes through. “Make sure you get the compliance certificates, including rates, electrical and gas certificates, as well as approved building plans for any additions that have been done to the house,” she advises. “If you’re not sure what to look out for, there are companies that offer inspections for new homeowners.”

Get the right level of cover

In terms of insurance, you want to get the right level of cover at the right price, according to Langa. “The best quote is not always the cheapest quote,” she asserts. “Speak to your broker to understand what the cover is that you’re getting, what excesses you’ll need to pay if you claim, as well as limits and extensions.”

She highlights the two kinds of insurance available to property owners: buildings insurance and contents insurance. “Buildings insurance covers the structure of your house, while contents insurance covers the belongings inside your home,” she explains, adding that it’s a good idea to get both.

Don’t under- or over-insure

A common mistake for new homeowners is not insuring your property adequately, Langa says. “Make sure that you insure your home at the replacement value and not the market value,” she urges.

Market value is what you’d get if you sold your home, based on factors like location, demand and nearby amenities. Replacement value is what it would cost to rebuild from scratch, including demolition, municipal fees, and construction. “Insuring your home at market value can mean paying too much – or worse, being underinsured if disaster strikes,” she comments.

It’s also always a good idea to communicate with your insurer if you make any changes to the house. “Whether you add a solar geyser, water-storage tank or build a loft, your insurer needs to know about it,” she says. “Review your policy annually and speak to your broker if there are any changes to your home. Remember, your broker is there to act in your best interests.”

With the right checks and balances in place, you don’t have to worry. “Buying a home is a huge achievement, but protecting it is just as important,” concludes Langa. “With the right guidance and cover, you can enjoy peace of mind in your new space.”