Property owners free to select insurance providers

Home buyers are not obliged to accept insurance provided by banks or bond providers.

Tom Creamer, managing director of Telesure Investment Holdings said yesterday the national credit act compelled banks to allow consumers the freedom to decide who provided their insurance.

"Banks tend to promote their 'own insurer' because they generally own, or are shareholders of, the insurer. The risk of any large investment is substantial, and buying a home or other property is no exception," Creamer said.

He was reacting to a Carte Blanche TV consumer series which stated that many clients from various banks had found it difficult to cancel their bank's in-house homeowners' insurance.

Creamer said it was vital that buildings or properties were covered against fires or explosions as well as storm, flood and lightning strike resultant damage.

He further highlighted that property owners often saved money by insuring their homes or buildings with the same company that insured their vehicles or home contents.

"A bank will often put great pressure on the homeowner to insure through its associated insurance company, but the truth is that it does not matter which insurance company you use, as long as you insure your home," he said.

The Star

Posted at 06:27AM Nov 23, 2010 by Editor in Home Loans  |