Accommodation rental in South Africa is very popular due a number of factors. First of all there is a huge influx of people to the cities to seek work and other opportunities. Gauteng is the most populous province due to its economic advances. Many people are compelled by their circumstances to travel to Joburg and Pretoria for these opportunities. Other cities and towns in South Africa also experience high influx of people from rural areas who are in need of a job, business and study opportunities.
These factors create a lot of problems on the housing front. Accommodation opportunities are in many instances very limited. First, people have to find accommodation they can buy or rent on a monthly basis. Subsequently, depending on your financial muscles you can buy a house in areas you feel are safer and can provide you with easy access to their work or business places. For the majority, it is time to look for a place to rent whether in a back room in the location such as Soweto or at upmarket areas like Sunninghill in Northern Johannesburg. In some areas in Soweto, people rent space at the back of the yard and build tin houses also known as zozo. This is a cheap form of rent since materials belong to the renter. Accommodation rental has become a lucrative business in big cities due to the high demand created by change of living areas for many who head to the city to seek new opportunities.
The effects of the recession on consumers
The trend, of renting residential properties, is also made worse by the fact that real estate prices are still very high and many people still cannot afford to buy a house of their own. The 2008 recession left many people in dire financial situations and most have not been able to recover from it since then. Many were stripped of their life savings and others lost their main sources of income such as jobs and businesses. Some who were able to hold on to their houses have rented them out and now live in the backyards of their properties. I have heard of cases of people moving out of their houses and rent them out. They build backrooms in the yard and live there so that they can collect rent and keep up with mortgages and still have a place to stay, however, small. Some are renting out back rooms to make some money. There are those renting properties to make extra money and those that just want to keep their house by keeping up with monthly mortgage payments. Renting a residential property is also considered a stable investment. In busy areas such as Cosmos city near Randburg in Johannesburg, it is difficult to find a room to rent. The demand is more than supply. This has been blamed for the mushrooming of shacks in the nearby neighbourhoods.
Introducing renters insurance
Unfortunately, many of these informal renters as well as other renters do not take out renter’s policy due to lack of knowledge. Many think that if something happens to their properties the landlord will be responsible for the damage caused to their belongings. They cannot have been more wrong. The landlord is only responsible for damage to the property itself unless it was damaged by the tenant. Any belonging of the renter is their responsibility. Whether it is a natural disaster or man-made disaster that damages the items, unfortunately the renter takes responsibility for what happens to their goods.
Renters insurance vs home insurance
The renters insurance has some similarities with home insurance or home contents insurance. The difference is that the latter covers someone who owns a house and their contents. The former covers contents in a rented house or apartment. Both cover the contents of the house that is either rented or owned. The renters insurance covers the following. First, it covers the possessions of the renter against loss and/or damage instigated by robbery or an environmental calamity. Also covered by the renters insurance are smash ups set off by fire or smoke, water, building collapse etc. The insurance also covers repairs to damaged goods and if necessary the replacement of the items that can no longer be repaired to function as expected or are stolen.
The importance of renters insurance
People buy expensive items whether they are renting or owning a house as an investment or to live lavishly. It is important to ensure your items are insured so that when the belongings are stolen or damaged you can still have similar items or have the ones damaged repaired to their original functionality. Do not wait too long before you take a cover on your goods. If possible before you take the goods home make sure they are already insured. It will make your life easier. A disaster and theft cannot be predicted, it can happen the day you move into your new rented home or the day you buy your goods. Make sure you cover every single item otherwise when you make a claim those that are not insured won`t be repaired or replaced.
How does the renters insurance work
The Renters insurance pays the amount equivalent to the market value of the affected items. This conclusion is made after a few factors are taken into consideration such as the items valuable existence. The policyholder will grant the funds to make such a replacement or repairs if it is not necessary to replace the whole item. If you live in a communal property such cover cannot be provided to you. The renters cover is for people who live on an individual property. It would benefit you a great deal and keep your belongings safe in either your apartment or house in a country ravaged by crime and has a few disasters once in a while. You do not know when the next one will happen and as for crime people lose their belongings every day due to theft and house robberies. It is time you get a cover for that LCD TV you are so crazy about or that new 3D DVD player you just bought or the couch you can`t let anyone sit on because of its worth. In short, Renters insurance is highly recommended for renters to keep their goods safe.
Renters insurance is more than relevant in South Africa since accommodation rental is widespread from Cape Town to Musina. Also, looking at the crime stats in particular house robberies you cannot help but realise that to lose your hard earned properties is always a possibility. Again, although South Africa does not have too many reported natural disasters, however, man-made disasters are a usual occurrence and can catch you off guard if your belongings are not insured. The advantage, of having renters insurance, is peace of mind knowing that if something was to happen to your items, you will still get the money to replace them without digging deep into your pocket.
Be wise, don’t be caught offside, get a cover for your goods today with the renters insurance, you do not know when you will need it.