Question 1

What is the difference between buildings insurance and contents insurance in South Africa?

Accepted Answer

Buildings insurance covers the physical structure of your home — walls, roof, floors, built-in fixtures, and permanent improvements — against fire, storm, flood, and subsidence. Contents insurance covers movable possessions inside the home (furniture, electronics, clothing, appliances). Both can be packaged together under a comprehensive household policy. Bond holders are typically required by the bank to maintain buildings insurance.

Question 2

How do I calculate the correct sum insured for home insurance?

Accepted Answer

The sum insured for buildings should be the REBUILD cost — not the market value of the property. Rebuild cost includes demolition, professional fees, and construction at current rates per square metre. In South Africa, rebuild costs range from R9,000–18,000/m² depending on location and finish quality. Under-insuring means the insurer can apply average and only pay a proportionate share of any claim.

Question 3

What does home insurance typically exclude in South Africa?

Accepted Answer

Common exclusions in South African home insurance policies include: gradual deterioration and wear-and-tear, subsidence due to tree roots or poor construction, damage while the property is unoccupied for 60+ days, and deliberate damage by the insured. Most policies also exclude flooding from rivers (standard storm cover does not include flood). Read your policy schedule carefully and ask your broker about endorsements.

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