Building Insurance in South Africa



Blog, Home, Money

Owning a property comes with many costs, including building insurance, maintenance, and home contents insurance. You need to be prepared for the costs of owning a home.

Having building insurance will protect you from “what if” moments, like if your home burns down or gets flooded and damaged.

If your property has been damaged or destroyed, you are likely to feel overwhelmed by the loss and by the repair, replace,ment and recovery process that lies ahead. If your property was insured, that insurance policy is the best way to get you back home.


What is Building Insurance

Building Insurance covers you against risks to your property. In most cases, you get protection against fire, lightning, wind, flood, earthquakes, theft and vandalism, but every Insurance company is different hence it’s important to read and understand your benefits.

If you’ve just bought a home and you’re paying a bond, this type of insurance is compulsory. It covers everything from the physical structures on your property, such as your home and its outbuildings, but it doesn’t cover items inside the house like your electronics and furniture.

For example, if someone breaks down your window or door and goes into your house and steals your TV. The provider will only fix the door and window.

How Much Is Building Insurance?

When you contact the insurance company for a quote they will ask for various information like your address, how many bedrooms and bathrooms does your home have; do you have carpets, do you have a fireplace,

You should not make the mistake of using the market value of your home to calculate its worth. The replacement value would be the estimated figure of how much it would cost to rebuild your home to the state and condition it was in before it was damaged, this should include all professional fees required to rebuild the property.

To calculate your home’s estimated replacement value, seek a professional property valuation expert or a building contractor. As a homeowner, it’s your responsibility to make sure that the sum insured is reevaluated and if necessary, increased each year to cater for the risk related to building costs.

What Does Building Insurance Cover?

It’s important to go through your insurance cover agreement and understand the clauses, terms and conditions and excess you will be expected to pay in the events of a claim.

Common Issues Covered by Building Insurance

  • Fire or explosion
  • Flooding
  • Burst, leaking or overflowing geysers or water-heating systems and water pipes
  • Natural Disasters: Wind, lightning, storms, hail, flood or snow
  • Outbuildings
  • Driveways
  • Walls
  • Garages
  • Fences
  • Patios
  • Swimming pools
  • Boreholes
  • Swimming pool and spa pumps
  • Gate motors
  • Tennis courts
  • Underground pipes and cables

Issues Not Covered by Building Insurance

  • Damages or repairs to a home due to negligence or wear and tear.
  • Theft and attempted theft of furniture

Best Building Insurance South Africa

Your monthly building insurance premium is a fixed amount required by your insurance provider to provide cover for a defined period of time – generally depends on the size of your home loan and the value of your property.

Some of the best Building Insurance companies in South Africa are:

  • King Price
  • Santam
  • Momentum

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