AIG Insurance Covers the Mortgage - 24 Aug 2009 09:26
While traditional home insurance covers the value of the home in the event of a catastrophe, the owner is expected to continue paying his or her mortgage even while the home is uninhabitable. AIG have discovered the solution.
Like their international counterparts, AIG South Africa are offering the highly successful Disaster Mortgage cover as part of their Plus Product range. The unique insurance policy covers the policyholders’ mortgage for up to six months after a disaster that leaves them out of a home. The new Disaster Mortgage product is unlike any other home insurance products in that, if one’s home becomes uninhabitable from 48 hours to 6 months, the insurer will reimburse the mortgage for that time period.
Traditional house insurance policies and insurers will reimburse the homeowner the value of the home for it’s reconstruction. While many insurance products cover the costs of alternate housing while the construction takes place - the owner is still obligated to pay for mortgage on the house that they’re not living in.
The Disaster Mortgage product covers the monthly mortgage fees for up to 6 months. Cash payments in the form of mortgage reimbursements are made to policyholders after 48 hours. The new policy fills a much needed gap in home coverage as there has been a sharp rise in natural disasters over the last decade. These effects are not immune to South Africans as floods and fires have led to an unprecedented number of homes being uninhabitable.
The premiums for the new cover are determined by the client depending on how much of the mortgage they would like to be covered for - but this amount cannot exceed the mortgage itself. This cover is part of the Plus Products insurance which tailors insurance to specific periods in people’s lives.
While traditional home insurance covers the value of the home in the event of a catastrophe, the owner is expected to continue paying his or her mortgage even while the home is uninhabitable. AIG have discovered the solution.
Like their international counterparts, AIG South Africa are offering the highly successful Disaster Mortgage cover as part of their Plus Product range. The unique insurance policy covers the policyholders’ mortgage for up to six months after a disaster that leaves them out of a home. The new Disaster Mortgage product is unlike any other home insurance products in that, if one’s home becomes uninhabitable from 48 hours to 6 months, the insurer will reimburse the mortgage for that time period.
Traditional house insurance policies and insurers will reimburse the homeowner the value of the home for it’s reconstruction. While many insurance products cover the costs of alternate housing while the construction takes place - the owner is still obligated to pay for mortgage on the house that they’re not living in.
The Disaster Mortgage product covers the monthly mortgage fees for up to 6 months. Cash payments in the form of mortgage reimbursements are made to policyholders after 48 hours. The new policy fills a much needed gap in home coverage as there has been a sharp rise in natural disasters over the last decade. These effects are not immune to South Africans as floods and fires have led to an unprecedented number of homes being uninhabitable.
The premiums for the new cover are determined by the client depending on how much of the mortgage they would like to be covered for - but this amount cannot exceed the mortgage itself. This cover is part of the Plus Products insurance which tailors insurance to specific periods in people’s lives.