Building insurance, especially in South Africa, is a crucial safeguard for homeowners. Given the unpredictable nature of events that can lead to damage, such as fires, floods, or even subsidence, having this insurance ensures that the physical structure of your property is protected. This type of insurance typically covers the main building, outbuildings, and any permanent fixtures, like swimming pools or driveways.
Why is Building Insurance Important in South Africa?
In South Africa, if you have a home loan (or bond), your lender will likely require you to have building insurance. This is because the bank needs to protect its investment—your home—against potential damage. Without insurance, if your home were to suffer significant damage, you might find yourself unable to repair it, which could leave the bank with a devalued asset. Building insurance provides peace of mind, knowing that in the event of an unforeseen incident, the financial burden of repairs or rebuilding won’t fall solely on you.
Understanding What Building Insurance Protects in Your Home:
Building insurance in South Africa provides coverage for the structural aspects of your property. Here are some specific items typically included:
- Permanent Structures: This includes the main building of your home, any outbuildings, garages, and even fixtures like swimming pools, driveways, patios, and built-in braais.
- Fittings and Fixtures: These refer to items permanently attached to the property. This includes plumbing fixtures, built-in cupboards, kitchen units, and any other fixed installations that are integral to the house.
- Gate Motors and Electric Fencing: Modern homes often include automated gates and electric fencing as security measures. These are usually covered under building insurance, ensuring that if they are damaged or destroyed, the cost of repair or replacement is covered.
- Perimeter Walls and Fences: Boundary walls, fences, and even retaining walls that form part of the property are covered. These are crucial for security and aesthetic reasons, and damage to them can be costly to repair.
- Roof and Guttering Systems: Damage to the roof, guttering, and downpipes due to storms, wind, or other insured events is typically covered. This is important for maintaining the overall integrity of the home.
- Driveways and Paths: These are also considered part of the property’s structure and are covered under building insurance. Damage caused by heavy vehicles or natural events will generally be included.
Exclusions:
Building insurance does not cover everything on your property. Here are some key exclusions:
- Movable Items: Furniture, electronics, and other movable items are not covered under building insurance. These would need to be covered under a separate home contents insurance policy.
- Bicycles and Sports Equipment: Items like bicycles, golf clubs, and other sports equipment are considered personal property and would need separate coverage under home contents insurance.
- Landscaping and Plants: While your physical structures are covered, any damage to gardens, trees, or plants is usually not included in building insurance policies.
- Vehicles: Cars, motorcycles, and other vehicles are not covered under building insurance. They require specific vehicle insurance.
- Wear and Tear: Damage resulting from normal wear and tear, poor maintenance, or gradual deterioration is not covered. This is a standard exclusion in most policies.
- Certain Natural Disasters: While many natural events like storms and floods are covered, certain specific risks like earthquakes or landslides might be excluded unless explicitly added to your policy.
- Pests and Vermin: Damage caused by termites, rats, or other pests is not covered, as this is considered preventable through regular maintenance.
- Tenant’s Personal Belongings: If you rent out your property, your building insurance won’t cover the tenant’s personal belongings. They would need to take out their own contents insurance.
By understanding these inclusions and exclusions, you can better protect your home and ensure that you’re adequately covered in case of an unforeseen event. It’s also advisable to regularly review your policy to ensure that it still meets your needs as your property or circumstances change
Which Events Does Building Insurance Include and Exclude?
Inclusions: Building insurance typically covers the cost of repairing or rebuilding your home if it’s damaged by fire, storm, flood, or other natural disasters. It also covers damages caused by vandalism, vehicle collisions, and in some cases, theft. Additionally, many policies will cover the costs of temporary accommodation if your home becomes uninhabitable due to an insured event.
Exclusions: However, it’s essential to understand that not everything is covered. Common exclusions include damages due to wear and tear, faulty workmanship, or neglect. Additionally, damages caused by insects, pests, or poor maintenance are usually not covered. Some policies may also exclude certain high-risk areas, like properties in flood-prone regions, unless additional cover is purchased.
Key Clauses to Watch For
When choosing building insurance, there are several specific clauses you should pay attention to:
- Replacement Value vs. Market Value: Ensure your property is insured for its replacement value (the cost to rebuild) rather than its market value (what it would sell for). Insuring for the market value might leave you underinsured.
- Subsidence and Landslip Coverage: Given South Africa’s geological conditions, it’s important to check if your policy includes cover for subsidence or landslip, which can cause significant structural damage.
- Excess Clause: This refers to the amount you’ll need to pay out of pocket before your insurance covers the rest of a claim. Higher excess might lower your premium but increase your cost in the event of a claim.
- Accidental Damage: Not all policies automatically include accidental damage, such as a broken window or burst pipe. You might need to add this as an optional extra.
Understanding these aspects of building insurance can help you make an informed decision and ensure your most valuable asset is adequately protected.
If you need further details or would like to compare policies, get in touch with our partner broker by completing the form here
