Home cover refers to residential building insurance. These policies cover damage to building that may be caused by floods, fires, earthquakes, robberies, war, burst pipes and riots. It is very important to carefully read your building insurance policy before signing the contract to ensure that you will be able to cover any damage caused which may not be covered by the proposed home cover insurance policy. Home cover also implies credit insurance to cover your mortgage in the event of retrenchment, being diagnosed with a terminal illness or being disabled. To ensure that the financial institution that issued your mortgage does not get left with an outstanding debt if any of the above mentioned events occur, they may make buying home cover compulsory as a condition of the loan. It is also prudent to ensure that any outbuildings are insured if necessary.