Find better buildings insurance

If your home is financed by a bond, your lender will require Buildings Insurance for the duration of the loan. Outside of bond requirements, there is no regulation that makes Buildings Insurance compulsory for all homeowners. That said, the financial consequences of rebuilding structures without cover, particularly after flooding, fire or storm damage, can be significant. Reviewing your Buildings Insurance regularly is worth doing even after your bond is settled. Comparing quotes can save you money on insurance and help you indentify coverage gaps and excesses.

Buildings premiums are based on several factors including the size and floor space of your home, building materials used, the age and condition of plumbing and electrical systems, your location in the country, security systems and the excess amount you choose.All buildings require appropriate cover, whether newly developed or well-established. Have a buildings representitive do an evaluation of what it would cost to rebuild your property today, factoring in current building services such as architecture, building engineering costs, labour and the management systems and technologies used in modern construction.

For many, our buildings represent homes and businesses, developed and constructed to serve our needs. When an unforeseen event arises and damages these buildings, Buildings Insurance gives us a second chance. From a starting concept, to architects reviewing the planning and building services and professionals bringing it all to life, Buildings Insurance is there to ensure your home or business restored. However, this can only be done, if you insure according to the replacement value of your building.

Replacement value is what it would cost to rebuild your home's structures from scratch at current construction costs, materials and labour rates. It is not the same as your property's market value or purchase price. Factors that affect replacement value include the number of floors, size, roofing type and materials used. The South African Institute of Valuers recommends reviewing your replacement value annually as construction costs change over time. Underinsuring your buildings can significantly reduce any claim payout.

Most standard Buildings Insurance policies cover damage from flooding, storms and burst pipes, but cover for flooding varies by insurer and by the flood risk profile of your property. Properties in coastal areas such as Cape Town and Durban face higher risks and insurers may apply specific conditions or exclusions. In higher-risk areas, specialist cover may be required. Always check your policy schedule for the specific terms around flooding and storm damage before assuming standard cover applies.

Buildings Insurance is available for a wide range of property types including houses, townhouses, sectional title units, flats, holiday homes and rental properties. The structures covered vary by policy, with some covering outbuildings, offices, boundary walls and terraces and others covering the main structure only. For sectional title units, cover through the body corporate may partially address the buildings, but confirm what the scheme's policy includes before assuming full protection is in place. Specialist policies are available for thatched homes, properties under renovation and unoccupied buildings.

Yes. As a landlord, Buildings Insurance is your responsibility. Your tenants' own insurance will not protect the structures of the property. Landlord Buildings Insurance covers the buildings even when the property is occupied by paying tenants. Some landlord policies also include cover for loss of rental income benefits if the property becomes uninhabitable due to an insured event. Rental properties carry a different risk profile to owner-occupied homes, which can affect your premium. Inform your insurer of the occupancy status when obtaining cover.