Insuring your home is not as expensive as you may fear

The hesitation to purchase a home insurance may be attributable to fears that insurance can be very expensive. That perception however may be misguided and not a true reflection of the real cost to the homeowner in the event of unforeseen disaster.

Building houses in Seychelles is a really costly endeavour. From the cost of construction materials to manpower, architectural designs, duties etc. The total amount can easily and quite quickly rise up. Nowadays, people may have to fork upward of SCR1 million to build a new house. It is also an intensive and tasking effort to go through the whole process from start to finish for months. 

Imagine having to do that all over again in the event of a peril. Fire is one of the most common causes of damage to houses which may even require the complete demolition of the building. After spending upwards of SCR1 million or more in building a house, all this effort and money can sadly go down in flames in mere seconds.

Where does the homeowner go from there? How can the homeowner build their house back? Where will they get the resources to go through this process all over again? These are some of the persistent questions a homeowner may face in the aftermath of losing their home

Here is where insurance come in, specifically home insurance policies. In the event of a peril, such as fire, storm, flooding, burglary or others, the policyholder will be compensated the value of the loss to a certain amount, as per conditions of their policy. 

What is the cost to the policyholder for this insurance? To a homeowner with a home value of at least SCR1 million it can be as little as SCR250 of premium per month. As can be seen for just this nominal cost per month, you protect an asset which is worth millions. It’s not quite expensive, when you compare it to the financial loss of losing a house.

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