Home Contents Insurance Myths Busted: What You Need to Know

When something goes wrong at home, the damage is often sudden, and the costs are unplanned. This is when many South Africans discover gaps in their cover - often when it’s too late to fix the problem. That’s why the right Home Contents Insurance from Budget Insurance can make a real difference. Unfortunately, people rely on word-of-mouth, where myths about Home Contents Insurance get passed around. This guide breaks down the most common misconceptions, so you know exactly what is - and isn't - covered, so you can confidently protect the things that matter most.

Why you can’t afford to skip Home Contents Cover

South African households are exposed to risks every day, often without realising just how vulnerable they are. A single thunderstorm can damage appliances through a power surge, a burst pipe can ruin carpets and furniture within minutes, and a break-in can leave you needing to replace items that took years to collect. These incidents are more common than people think - over a million households reported a break-in during the 2023/24 reporting period. These unfortunate events hit without warning, and most families don’t have the savings to replace everything all at once.

That’s where Home Contents Cover can cushion you financially when disaster strikes. Whether your home is affected by fire, flooding, lightning, theft, or accidental damage, insurance can help you replace essential items and assist you in getting life back to normal faster. Without cover, the cost of replacing TVs, fridges, clothing, bedding, and other everyday items can quickly drain your finances and add stress at the worst possible time.

Home Contents Cover isn’t just for big disasters. A kitchen cupboard collapsing might destroy dinnerware, dozens of glasses, and your new air fryer all at once. With house contents insurance, you don’t need to absorb these costs alone. The right insurance helps you recover quickly and affordably, so you can get back on your feet without having to start from scratch.

Common misconceptions about Home Contents Insurance

A lot of South Africans base their insurance decisions on old information, assumptions, or advice from friends. That’s why misunderstandings are so common. These four myths can leave you underinsured, paying too much, or missing out on protection you actually need.

Myth 1: Home Insurance automatically includes your contents

Many people believe their contents are protected because they have Home Insurance. But these are two separate types of cover.

• Buildings Insurance protects the physical structure of your home - the walls, roof, tiles, fixtures, and built-in fittings.

• Home Contents Insurance protects what you keep inside your home - appliances, furniture, clothing, electronics, décor, and personal belongings.

If you only have Buildings Insurance and your belongings are stolen or damaged, you may have no cover at all. That’s an expensive misunderstanding - always check your policy to confirm that both your structure and your contents are covered.

Myth 2: You only need to value your belongings once

Contents lose value, new items are added, and others are replaced. What you paid for your television three years ago isn’t what it is going to cost you to replace it now. If you don’t keep your valuation updated, you risk being underinsured. That means your payout might be reduced because your insured amount doesn’t match the actual value of everything in your home.

It’s a good idea to update your inventory every year or whenever you buy something significant. Walk through your home, room by room, and make sure your total value is accurate. Preventing a major financial shortfall only takes a few minutes of checking every 12 months.

Myth 3: High-value items are automatically fully covered

Jewellery, artwork, collectables, and specialised equipment often require extra protection. Many policies cover them, but only up to a certain limit. For them to be covered at full value, they need to be declared and listed separately with their specific values.

If you own anything expensive or rare, you must tell your insurer. It’s the only way to make sure it’s fully covered at its correct value. Don’t assume your policy limits will automatically match the worth of high-ticket items. If you’re ever unsure, ask your insurer, not your friends.

Myth 4: Renters don’t need Home Contents Insurance

Many renters believe that their landlord’s insurance covers everything, but it only covers the building itself, not their furniture, electronics, clothing, or other belongings.

If you rent a house or flat, you face the same risks as any homeowner, such as burglary, fire, water damage, and more. If a geyser bursts, your landlord will cover the cost of replacing the ceiling, cleaning carpets, and maybe a new coat of paint. But the cost of replacing your damaged TV — and anything else you own — would fall entirely on you. As a renter, you have just as much to lose, and the right cover can save you from serious financial strain.

Frequently asked questions about Home Contents Insurance

• What does Home Contents Insurance cover?

It usually covers your household belongings against theft, fire, storm damage, lightning, burst pipes, and certain accidental damage. This includes items like appliances, clothing, furniture, décor, and electronics.

• What does Home Contents Insurance not cover?

Most policies exclude gradual damage, wear and tear, maintenance issues, and anything caused by neglect. Very high-value items will not be fully covered unless they are specifically specified.

• Can I get Home Contents Insurance without Building Insurance?

Yes. You can take out Home Contents Insurance even if you don’t own the property. This is common for renters or people living in shared accommodation.

• Do I need to update my home contents valuation every year?

Yes. Updating your valuation yearly helps you to stay accurately covered and ensures you don’t end up being underinsured when you need to claim.

Get a Home Contents Insurance quote

Ready to protect the things that make your house a home? Get a Home Contents Insurance quote from Budget Insurance and choose the cover that suits your lifestyle and pocket. If you need help, our team will gladly guide you through your options.

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Sources:

1 SABC News: https://www.sabcnews.com/sabcnews/over-1-5-million-reported-house-break-ins-in-2023-24-statssa/

2 News24: https://www.news24.com/citypress/personal-finance/how-much-cover-do-you-need-for-household-contents-20200214

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice. Budget Insurance is a licensed non-life insurer and FSP, Ts & Cs online.