A Quick Guide to Buildings Insurance & What’s Covered

Owning a home is one of the biggest financial commitments most people make, and protecting it is essential. Whether you live in a coastal village, an inland city, or a rural farming area, your property faces risks, from severe weather and fire to theft and structural damage. Buildings Insurance is a wise thing to have. The most important question to ask yourself is, 'What does Building Insurance cover in South Africa?'. In this guide, we will go over the benefits of protecting your home, what's covered and where to get the best policy.

Why Building Insurance is essential in South Africa

South Africa’s climate is as diverse as its landscapes. The Highveld is known for intense thunderstorms, the Western and Eastern Cape experience fierce winds, and flooding is common along rivers and coastal areas. In April 2022, News24 reported that devastating floods in KwaZulu-Natal displaced thousands of people, destroyed homes and tragically claimed hundreds of lives.

Events like these remind us that while you can’t control nature, you can protect your finances with the right Building Insurance policy.

If you’re unsure about what’s covered, what’s excluded, and where to get the best Home Insurance quote, this guide will take you through everything step-by-step. 

What Is Building Insurance?

Building Insurance (sometimes called Homeowners Insurance) covers the physical structure of your home and permanent fixtures against damage or destruction. This can include:

• The main dwelling

• Garages and outbuildings

• Permanent fixtures like fitted kitchens and bathrooms

• Swimming pools and tennis courts

• Boundary walls and fences

It’s important to understand that Building Insurance is different from Home Contents Insurance, which protects your personal possessions. For full protection, many homeowners opt for building and contents insurance, which combines both types of cover into one policy. Discover more about Home Contents Insurance here. 

Why every homeowner should have Building Insurance

If your home were destroyed tomorrow, could you afford to rebuild it out of pocket? For most South Africans, the answer is no. The cost of materials, skilled labour, and replacing structural elements can be financially overwhelming.

Building insurance ensures that:

1. You’re financially protected if disaster strikes.

2. Your investment retains its value, which is vital if you plan to sell in future.

3. Your mortgage lender is satisfied because many banks require proof of homeowners' insurance before approving a home loan.

What does Building Insurance cover in South Africa?

A good policy, like Budget’s Buildings Insurance, will generally include:

1. Damage from Natural Disasters

• Storms, floods, and heavy rains

• Earthquakes and tremors

• Fire and lightning strikes

2. Structural Damage

• Rebuilding if your home is destroyed

• Repairs to walls, roofs, floors, and foundations

• Permanent fixtures like built-in cupboards, kitchens, and bathrooms

• Solar panels, geysers, and boilers

3. Outbuildings and Amenities

• Garages, cottages, and sheds
  Swimming pools and tennis courts

4. Theft and Vandalism

• Structural damage from break-ins

• Malicious damage to property

5. Loss of Rental Income

If you’re a landlord and your tenant must move out because of insured damage, your policy can cover the loss of rental income.

Common questions about Building Insurance cover

• Does Building Insurance cover water leaks?

Yes. Most policies cover damage from burst pipes, leaking geysers, faulty household appliances, and storm-related flooding. The key is to report and repair leaks quickly to prevent secondary damage.

• Are cracked walls covered?

No. Hairline cracks from plaster shrinkage are generally not covered, as these are maintenance issues. However, major structural cracks caused by subsidence, impact, or water damage are usually covered.

• Are windows covered?

Yes, for sudden damage from storms, accidents, or break-ins. Wear and tear (e.g., rotting frames) is excluded.

• Are boundary walls covered?

Yes, including vehicle impact, storm damage, and falling trees. Some policies even cover the cost of posting guards if your wall’s damage creates a security risk.

• Is subsidence covered?

Yes, most insurers cover repairs for damage caused by subsidence, but not the cost of preventing it from happening again.

What Building Insurance doesn’t cover

There are limits and exclusions on your House Insurance policy. Exclusions typically include:

• Wear and tear or poor maintenance

• Damage caused intentionally by the homeowner

• Personal possessions (these require Home Contents Insurance or Portable Possessions Insurance)

For combined protection, consider Budget’s Home Insurance options, which can include both building and contents insurance in one policy.

How to choose the right Building Insurance policy

When comparing policies, consider:

• Rebuild cost. Not the market value of your home, but the actual cost to rebuild it.

• Scope of cover. Does it include outbuildings, solar systems, and swimming pools?

• Disaster coverage, like storms, floods and fires.

• Any additional benefits, such as Budget’s Assist Benefits (emergency plumbers, electricians, glaziers, locksmiths).

• Premiums and excess - balance affordability with adequate cover.

How to get a Building Insurance quote

Getting a Home Insurance quote is quick and straightforward. You can request one directly from the Budget Insurance online. 

When requesting a Building Insurance quote, have the following ready:

• Your home’s address and size

• Construction type (brick, wood, thatch)

• Details of additional structures (garages, cottages)

• Security measures in place (alarms, fencing)

Tips for lowering your Building Insurance premium

Why not try to lower your House Insurance premiums with some of these proven ways to reduce your premiums: 

• Installing security systems, like alarms, CCTV, and burglar bars, can lower risk.

• Maintain your home. Your claim may be rejected if it is found that your home was poorly maintained or neglected, such as having clogged gutters or loose roof tiles. 

• Bundle policies. Combining building and contents insurance with the same insurer can mean discounts.

• Increase your excess. Taking on a higher excess can reduce your monthly premium.

Where to get Building Insurance? 

Protect your home and future with a Home Insurance quote. From fire and floods to theft and storm damage, the risks to your home are real. But with the right Building Insurance cover, you can safeguard your property, protect your finances, and gain peace of mind. Get a Building Insurance quote from Budget Insurance.

Watch & Learn

Understanding What Buildings Insurance Covers – South Africa [YouTube]

This video walkthrough simplifies what’s included—perfect for homeowners seeking an easy reference.