The company was developed by Kunene Makopo Risk Solutions in partnership with Afribiz Invest, and is underwritten by the Constantia Insurance Company.
Makopo says although RDP houses have been positive for society, communities are rife with stories about families who experience crippling financial strain after receiving their property.
“When beneficiaries of low-cost homes suddenly come across loss or damage to their properties, they face a heavy financial burden. Most RDP families don’t have access to spare money, so if something goes wrong with their new house, they can’t afford to fix it. And if you don’t maintain a property, more things tend to go wrong, so you end up in a negative cycle you can’t escape from,” adds Makopo.
He says the company has been developing the insurance product over the past six months. It will be officially launched on Wednesday.