EDITORIAL: Home insurance a necessity

Every time we hear about a house lost to, or damaged by fire, the question that automatically pops into our minds is – Was the house insured? Unfortunately, more often than not the answer is no. That means that thousands of dollars literally went up in smoke and the owner has no way to recoup their investment.

 

But despite that possibility, enough Barbadians are still not making an effort to obtain homeowners insurance. The argument often is that they cannot afford it, but is not building your home back from scratch when it has been affected by fire or some form of natural disaster, more costly than paying for an insurance policy? Why would a person invest thousands of dollars in building a home and then not seek to safeguard that investment against possible peril?

 

Yes there are persons who would say that a home insurance policy is too costly, but if a fire engulfs your home, or it is destroyed by hurricane or God forbid, an earthquake, is the cost of replacing the home not higher than a policy which is a couple hundred or few thousand dollars a year?

 

Admittedly, home insurance can be a major expense and given the prevailing economic conditions we are experiencing, it may be even more burdensome for some persons. But it is important that persons do not feel so burdened by the cost of an insurance policy that they start to contemplate whether or not carrying an insurance policy on their home is really necessary. To any wondering that, we say yes it is! It is better to be safe than sorry and if you cannot afford the premium in a lump sum, many of the insurance companies, if not all, offer flexible payment plans for their customers, some as much as 10 months. Such terms allow persons to put aside a little every month to safeguard their homes and ensure peace of mind, and it is an option that we firmly believe more Barbadians should pursue.

 

While none of us can predict if or when something tragic will happen to our home, there is no reason why we should not be prepared in the event it does. So the importance of having a home insurance policy cannot be over-emphasised, because the reality is that if a person loses their home and it is uninsured, the burden is then placed on the State to make provisions for them. These persons’ decision not to take responsibility for their own well-being places a burden on the rest of the taxpayers and that is simply not fair. So, if a great number of persons continue to leave their homes uninsured, as unpopular as the decision might be, Government may have to consider making homeowners insurance mandatory.

 

Indeed we know that there are some persons who would be opposed to such a move, but we have to weigh the imposition on the individuals against the further imposition on the State, and by extension the general population to look after persons who do not look after themselves. That is not to say, however, that Government does not have a duty to offer help where persons are in need and we see the evidence of that responsibility every year around Estimates time when money is allocated to the Welfare Department.

 

The fact is that Government has a social responsibility to assist and perhaps should give some thought to subsidising homeowners insurance for persons who truly cannot afford it, or to reintroducing home insurance as an allowance under income tax. Indeed, either of these may be cheaper in the long run than having to provide for persons should disaster strike.