Did You Know? 6 Types of Damage Covered by Building Insurance

Unexpected disasters like a fire, storm or flood can happen at any time, leaving homeowners feeling worried and stressed, but also with costly expenses on top of everything else! As a home or property owner, you need to ensure that you have secured your investment with comprehensive Building Insurance. Discover the six types of damage that will be covered by your insurance policy.

Building Insurance: the need for comprehensive cover

A question we often get asked is “What does Building Insurance cover?” To answer this simply, Building Insurance in South Africa will protect the physical structure of your home or property and its permanent features.

A Building Insurance policy from Budget Insurance is your protection in times of unprecedented disasters and structural damage to your home. What happens if you have no insurance in place and need to repair your house after a fire, flood, earthquake or storm? This could lead to homeowners facing very high financial costs. Another problem that a home-owner could face is being under-insured; in other words, you have some financial protection, but not enough to cover restoring your home to its former state. Our goal is to give you confidence, peace of mind, and the financial means to repair your home if you face unexpected catastrophes that might otherwise have led to financial ruin.

6 Types of Damage Covered by Building Insurance

Building Insurance is designed to cover any structural damage to your home and offers protection against various disasters. The following are six types of damage covered by this type of insurance:

1. Water damage is one of the most common and destructive damages for homeowners. Building Insurance coverage includes damage from floods, burst geysers (provided you include this as an add-on elective), and plumbing issues. It covers damage to your walls, floor, carpets and ceilings. 

2. Storm damage: In South Africa, storms and strong winds are not uncommon occurrences. Building Insurance will cover any lost tiles, roof damage, damage to side walls and other exterior features (such as doors and windows) and structural issues. For example, hail can cause damage to the windows. 

3. Explosion damage: This can be caused by a gas leak or electrical malfunction. Building Insurance covers any damage to the roof, walls, floors, and foundation resulting from an explosion. For example, an electrical appliance could malfunction, resulting in a fire.

4. Impact damage: Your property could get damaged by a vehicle accident resulting in a collision. A good insurance policy will cover elements such as walls, windows, gates, and doors. For example, if your neighbour accidentally reverses into your security gate, damaging the structure, the cost of repairing the structural damage will be covered by Building Insurance.

5. Foundation damage: Natural occurrences such as sinkholes, earthquakes or storms can cause extensive damage to property. For example, if a sinkhole causes foundation instability, repair costs required to stabilise the building will be covered by Building Insurance. 

6. Fire and smoke damage: Fire is one of the most emotionally devastating events that can happen to a home or property owner. Insurance allows for the walls, roof, electrics, foundation, and structural elements to be covered, thus enabling you to restore your property to its original condition. For example, the whole property could be damaged as a result of a fire. Common causes of fire damage in South Africa are from stove/gas heaters, post-load shedding power surges, and wildfires.

Damage not covered by Building Insurance, and why

While Building Insurance aims to cover homeowners for almost all eventualities, it still comes with some limitations. These limitations or exclusions specify the types of damage or circumstances that might not be covered by your policy. This means that certain claims may be denied by your insurance company, and you may be responsible for covering the cost. Some damages that are generally not covered include:

• Home contents/personal belongings: Any damage to your personal items, such as clothing, household appliances and electrics – even if they’re damaged as a result of a storm or fire – are not covered by Building Insurance, but will fall under Home Contents Insurance. This is because they do not form part of the structure of your home.

• General wear and tear: Regular maintenance is vital to prevent deterioration. In 2022, the Ombudsman for Short-term Insurance (OSTI) warned homeowners that claims for damages, such as water damage, would be rejected[1] if they appeared to have happened over time or involved general wear and tear.

• Neglect: As with general wear and tear, a lack of maintenance may lead to rejected claims. Homeowners should conduct routine maintenance and fix any problems to avoid this outcome.

• Intentional damage: A policy will cover accidental damage but not intentional damage caused by the policyholder.

Explore a more detailed understanding of the differences between Building Insurance and Home Contents Insurance. We also recommend referring to your policy documents or speaking with an experienced insurance advisor for a complete list of inclusions and exclusions.

Get a Building Insurance Quote from Budget Insurance

Building Insurance is essential to cover your home against unexpected disasters. It covers most types of damage but has limitations and exclusions, such as home contents, general wear and tear and intentional damage. Ensure that your home is well protected and secure your property by getting a quick and non-obligation Building Insurance quote today. We ensure peace of mind through our tailor-made coverage at an affordable price. Protect your home with Budget Insurance.