EDITORIAL: Homeowners insurance, a must
For many years there has been concern raised about the quality of our housing stock, and when Hurricane Elsa hit the island earlier this month, it definitely reinforced the need for better built homes in this country.
Without a doubt, if our homes are to withstand the effects of climate change which will result in more intense and powerful storms, then we have to build back those homes better, in general we have to ensure that our current housing stock is up to scratch and that future builds meet a certain standard. This need for standards was recently highlighted by the Barbados Association of Professional Engineers (BAPE), which expressed concern about Barbados’ outdated building code, especially given the intense storms that we are likely to face going forward.
Barbados needs minimum standards for building and construction as a matter of urgency. While we appreciate that putting such standards in place will not automatically change the housing stock; we cannot afford to drag out feet on this any longer. Elsa’s passage on July 2, showed us that. In her wake, the weather system which became a hurricane while passing the island, caused damage to over 750 homes and completely destroyed several more. What is also of note, is that the vast majority of homes that were damaged were uninsured.
We are not promoting any insurance company here, but certainly it is not wise to buy or build a home, which is the largest investment the average person will make, and not insure it against peril. What is wise, is to secure a homeowners insurance policy to protect that investment, providing peace of mind and a sense of security.
So often people say that they cannot afford insurance, but should an uninsured home be razed by fire, or demolished by a hurricane or even earthquake, just think of the cost of having to rebuild an uninsured home from scratch. Certainly it would be better to pay for an insurance policy, as in the absence of insurance, a person stands to lose thousands of dollars and has absolutely no way to recover their investment.
Undeniably, home insurance can be a major expense and given the economic conditions being experienced in this country over the last few years, made worse now by the COVID-19 pandemic, persons will likely be inclined to consider that expense unnecessary and drop it. Instead they may hope and pray for the best, because we Barbadians believe God is a Bajan. But given that over the last few months we have had blow, after blow, after blow, taking comfort in that notion and believing that we will be spared serious harm is not something we should subscribe to.
Better safe than sorry is the motto we should live by. Yes insurance can be costly, but for those who cannot afford their premiums in a lump sum, the insurance companies offer flexible payment instalments, some as much as 12 months.
No one can predict if or when something tragic will happen to their home, so the importance of having a home insurance policy cannot be overemphasised. The reality is that if a person loses their home and it is uninsured, the burden falls on the State to make provisions for them. That is an extra burden that is placed on the taxpayers of this country.
On another note, it is equally important that where people do have policies, they ensure that they have not underinsured their properties, as a means of cutting costs. Some people are known to do that, so that their premiums are more manageable. But in such instances, should disaster strike, they would not likely be able to rebuild because the insurance payout would be a far cry from the actual value of the home. So, a word to the wise is enough.