The Story within the Story… Affordable Home Insurance In Guyana

Feb 01, 2015 Features / Columnists

By Leonard Gildarie

They say that life comes in a full circle. While writing on the housing situation in Guyana for over two years, and having brought the curtain down, I thought that was it for such topics. But last week I saw something interesting and could not resist the temptation of returning to my pet subject.
The GTM Group of Companies, one of Guyana’s oldest insurance entities, has launched a new homeowners’ policy that they say will not only make it affordable for first-timers, but has a variety of new features that are bound to have even the most uninterested of observers sitting up and taking notice.
Before we move into that, I want to go back to how penny wise and pound foolish we could be.
In Guyana, there are basically two ways to own a home: you raise the money from savings and families or you take a mortgage from a financial institution. If you take a mortgage, the banks will automatically demand that you take out an insurance policy as part of the conditions. This is necessary, as it would protect the banks in case of some disaster, like a fire. In case of persons using savings or borrowing money from relatives to complete their homes, it is a fact that the last thing many of them think about is an additional expense…like insurance.
Most folks I know, and from talks with the insurance companies, take out the basic. I pay over $40,000 for my property. It is what I can afford. The fact remains that still many homes in Guyana are uninsured. There are thousands of families who do not see the necessity. Why pay for something that in all likelihood is not going to happen?
The harsh reality is that Guyana has a unique scenario…we have notoriously unstable electrical supplies and we are below sea level. Many families also work and leave their homes all day long, returning in the evenings.
With regards to electricity and wiring in our homes, we all know the stories. Many old homes have been wired decades ago. There are regulations that state how often we should be replacing that wiring, and even how often we should have an expert check the entire system. GPL also has old wiring to many homes. The folks there have warned that when there are sparks, it could more likely be because of problems with wiring in the home…maybe two wires that have bridged and are sending out a higher than normal voltage.
As mentioned above, on the coastland, we are all living below sea level. There is an argument by climate change experts that we are now dealing with a rise in the sea level around the world because of constant melting of the glacier caps. We are also regularly under threat from not only rising sea levels but from our water conservancies and rains. We have poor drainage systems, made worse by garbage and siltation. The threat of flooding is always there. Then there are burglaries and bad tenants. There are many of us who can tell stories of the despair after coming home or waking up and discovering that the thieves have visited.
GTM is saying it can address these issues with specially-tailored affordable insurance. We are not here today to debate affordability, but rather to examine protection.
It is impossible to think that one would invest millions to build a home and furnish it and then see it all burn away.
A few weeks ago, I was called to cover a fire a few streets away. The top flat was burning. The frame remained, but everything else was gone. The family had left for work that morning. I later learnt he is a classmate.
Fortunately, the home is mortgaged and the bank will be paid from the insurance. The problem is that all the family’s prized possessions, like photographs, were lost. Never mind the inconvenience of living elsewhere while repairs are to be done. It is unlikely the family will receive any money to start over. That is why it is called a disaster.
Fire Manager of the GTM Group of Companies, Ramona Singh, in unveiling the new homeowners’ policy package recently said that it is unlike any other that is offered by its competitors, and that it will change the concept of the traditional property insurance strategy.
Of course, as was pointed out, GTM was quick to note that for many, price rather than what is being offered in the insurance policy is what matters.
Under the new package, GTM offers coverage for losses as a result of flood, hurricane, earthquake, falling trees, malicious damage, riot and strike.
It also offers coverage to buildings including the main building, outbuildings, fences, gates, swimming pools, satellite dishes, terraces, patios, the contents of each which includes, but is not limited to household furnishings, valuables, jewellery, sporting equipment, personal effects and electronic equipment.
The manager, according to a report in Kaieteur News, has put it beautifully: “A house is a significant financial investment that we make, so that we will all have our own safe place where we can enjoy the comforts of life with our families and friends. The peace of mind we require when we are away from our home is important, and so we make great efforts to ensure security of that investment. This coverage provides that security. We understand that need and so compensation is provided for damage or loss to your property, valuables and personal effects in the event of burglary or attempted burglary.”
The manager said that in every case of loss, whether partial or total, discomfort, inconvenience and financial instability inevitably occur and create a burden.
GTM is even offering coverage in case you are renting the property and for some reason, maybe fire or flooding, the place become inhabitable and no rent is coming.
There is also coverage for those working at the home, who become injured during the job. It can also extend to visitors who are invited and are injured.
Of course, she addresses those prized possessions.
“The finer things in life such as valuables, personal effects, jewellery, and sporting equipment, all carry with them a sentimental value because of the mere joy and pleasure they bring to our lives, and so we take extra care in protecting them from damage. This coverage provides for payment as a result of accidental damage or loss to these items.”
Then there is a strange one that I did not even know that there was coverage for. GTM has a policy that will cover food that is in the freezer and can no longer be used because of a breakdown for whatever reason.
For an additional cost, the insurance company also has the possibility of emergency air ambulance in case of sickness.
Lastly…death. “If the unthinkable happens, perhaps where an accident occurs resulting in death, while you are in Guyana, your dependents will receive compensation.”
Now while the above will all sound foreign, the reality is that in the developed world, like North American and Europe, being without insurance is unthinkable. Many families are unable to access proper medical care because of insurance.
We are moving in the right direction. I am sure that the other insurance companies will follow suit. It is inevitable if we are to compete.
More importantly, for the homeowners, we need to pull out the stops to ensure we protect ourselves. Our investments, our families, remain critical to our well-being. Insurance is one of the best ways.
God bless and may you enjoy the week.
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