EDITORIAL – Lack of home insurance a concern

With the annual Hurricane Season now upon us, it is no surprise that
there is concern being raised yet again about the state of our housing
stock, and also the need for homeowners to acquire insurance for their
properties.

Last Saturday during the press conference to mark the start of the
season, Minister of Home Affairs, Edmund Hinkson, called on Barbadians
to adequately insure their homes, as he lamented that the majority of
the chattel houses in this country are uninsured. Certainly we agree
that more houses need to be protected and join with the Minister in
urging those who can afford it, to put some money into homeowners
insurance.

The fact is, too often we hear about house fires, in particular, and
the reports from the fire officers at the various scenes are that the
houses were uninsured. While it can be appreciated that things have
been tough the last few years and are worse now with the covid-19
pandemic, with fire always a possibility and the hurricane season
predicted to be above average, we feel that no one should be taking
chances at this time.

We are just a few days into the season and already there have been
three named storms. If that is any indication of what this season has
to offer, they must all take the necessary precautions to safeguard
our investments.

The fact is that buying or building a home is expensive, add to that
the cost of furnishings, and the costs associated with homeownership
become even higher. We cannot afford then to make such large
investments and not do our all to safeguard them. It makes good
financial sense to get homeowners insurance to protect that investment
and give yourself peace of mind.

Undeniably, such insurance is a major expense and given the economic
conditions being experienced in this country over the last few years,
there are some who may be inclined to forego that expense and simply
pray for the best. But the saying goes, ‘God helps those who help
themselves’ and so while money is tight, persons cannot just hope and
pray, but must seek to shop around and see from whom they can get the
best rates to secure the necessary policies.

We have seen the damage caused to our neighbouring islands by
hurricanes – Dominica, Barbuda and The Bahamas come to mind as the
most recent. It is clear that more than prayer is needed to safeguard
our investments against Mother Nature. So the importance of having a
home insurance policy cannot be over emphasised, for while none of us
can predict if or when something tragic will happen to our home, there
is no reason why we cannot be prepared in the event it does.

In that vein, where persons cannot afford their premiums in a lump
sum, they should not be afraid to speak with their insurance companies
about paying in
instalments. Some insurance companies already offer instalments
options of as much as 10 and 12 months and with the global pandemic,
companies are looking to see how best they can assist customers as
their very existence depends on it.

With so many people not insuring their properties, perhaps the time
has come for Government to consider making homeowners insurance
mandatory to help ensure that persons are not reneging on their
responsibilities. We well remember a former Prime Minister suggesting
mandatory policies were not needed, as there are no third party issues
arising from the house, as is the case in relation to a car, but given
the burden that could be put on the State to assist those who fail to
insure their properties, it may still be worth considering.

Perhaps if it were to be made mandatory, Government could consider
subsidising it for those who truly cannot afford it. Perhaps thought
could also be given to reinstating home insurance as an Income Tax
allowance. Yes, such an allowance could cost Government a pretty
penny, but we have to weigh that against the greater good.