What the latest SA crime stats mean for you and your home insurance policy

What the latest SA crime stats mean for you and your home insurance policy

Two months ago, the South African Police Service released its official crime stats for 2018, showing that the most common type of crime in South Africa is home break-ins, with 625 happening every day on average. Now, the 2018 Victims of Crime Survey by Statistics SA, confirmed that house burglary is a major problem, representing 54% of all household crimes.

Crime in a neighbourhood not only poses a risk to residents’ safety, it can also have a significant impact on how much a homeowner pays for home insurance. The higher the crime levels in a particular suburb, the more likely a homeowner will claim from their insurance policy. Like living in an area prone to flooding, the risk of damage to property is just too high, therefore insurance companies tend to push up their rates for these residents.

Vera Nagtegaal, the executive head of Hippo, said homeowners need to be diligent about the type of crime defined in their policy. For insurers, there is a distinction between burglary and theft, with the former usually covered under a homeowners policy.  “This means that an item lost in a mugging might not be covered. To cover valuable items that are portable, you may have to pay an additional fee to specify them in your policy, ” she says.

For many home buyers, the process of finding their dream home starts with focusing in on the right suburb. Therefore, it’s imperative to explore all options before settling down. When it comes to insurance, some things are beyond human control. But, what home buyers can do to minimise insurance expenses is choosing a suburb that has a higher safety rating. Crime is something that South Africans cannot truly escape and these statistics once again serve as an eye opener for residents about the importance of home insurance to protect their investment.