What South Africans Should Know About Home Insurance Claims

A midnight fire, a burst geyser, or a break-in. None of these events are expected. So, it is only natural that you might not know what to do next.

At Budget Insurance, we don’t see Home Insurance as just a policy. We see it as protection that covers you from all angles when things go wrong.

To ensure you get back on your feet fast, we've put together this guide to explain the most common types of claims in South Africa and share expert tips on how to make your claim run smoothly.

The 5 Most Common Home Insurance Claims in South Africa 

Some House Insurance claims are more common than others. But they all follow disruptive, inconvenient events. Understanding them helps you gauge your own household risk and check that you have the right cover in place to enjoy the benefits of House Insurance.

1.       Fire and smoke damage

House fires can start from cooking accidents, faulty appliances, or electrical faults. Uncontrolled veld fires are also a risk for anyone near undeveloped land.

 Unfortunately, smoke damage can be just as destructive, ruining furniture, electronics, and structural elements even if flames never reach them. So, even a small blaze can leave your house uninhabitable.

This is why fires often result in the costliest Property Insurance claims, highlighting the long-term benefits of House Insurance.

2. Theft and break-ins

Housebreaking remains one of the top household crimes, affecting 5.7% of all households in South Africa 1. In 2023’s last quarter, the country recorded 40,751 cases of home burglaries, with about 22% happening in Gauteng 2. Claims aren't only for stolen possessions. There's also the cost of repairing damage caused during the break-in, like broken doors, locks, or windows.

3. Water damage from geysers, pipes, and plumbing faults

A half-filled bathtub holds around 100 litres of water—the capacity of a small geyser. This is released in seconds when a geyser bursts, ruining ceilings, walls, and floors. Most water pipes run through ceilings and walls, meaning even a small leak can result in costly claims.

4. Storm, lightning, and power surge damage

South Africa’s summer storms often bring hail, high winds, and lightning that damage roofs, gutters, and electrical systems.

Additionally, our ageing electricity infrastructure, worsened by frequent power outages, can cause power surges, damaging fridges, TVs, and other electronics. Some insurers reported surge-related claims increasing by as much as 60% during power outages.

5. Accidental damage

Life at home is full of (sometimes unwelcome) surprises. A cricket ball through the window, paint spilt on a carpet, or a heavy object dropped on tiles can all lead to costly repairs. Though sometimes optional, many homeowners choose to include accidental damage cover because these mishaps happen more frequently than expected.

Why it’s important to understand these risks

Knowing South Africa’s most common risks helps you choose the right Property Insurance and take precautions. Proper preparation reduces the chance of a claim, while customising your policy to your home’s needs lets you enjoy affordable insurance without sacrificing essential cover.

Expert tips for making a successful Home Insurance claim

Below are proven steps, grounded in real experience and best practice, to help ensure your claim with Budget Insurance goes through smoothly:

• Report the incident without delay. Contact your insurer as soon as possible after the incident. The sooner you report, the sooner the assessment can begin, and the less chance there is for details to be forgotten. Delays can sometimes lead to disputes over when or how the damage occurred, which may affect your payout.
  
  For example, if part of your roof collapses after a heavy storm, don’t wait until the weekend has passed to notify your insurer. Reporting immediately helps you avoid disputes about when the damage occurred.

• Gather strong visual evidence. Take clear, date-stamped photos or videos from multiple angles. Capture wide shots to show the context and close-ups to show the extent of the damage. If the damage worsens later (such as cracks spreading or water stains deepening), take follow-up photos to document changes.

• List damaged or stolen items with proof. Create a detailed inventory that includes brand names, model numbers, and approximate purchase dates. Wherever possible, attach proof of ownership such as receipts, warranties, or pre-incident photos. This is when having an up-to-date home inventory proves invaluable.

• File a police report for theft or vandalism. For incidents involving crime, such as burglary or malicious damage, most insurers require a police case number. File your report promptly and ask for a copy of the statement. Without a case number, claims relating to theft or vandalism might be rejected.

• Prevent further losses where possible. You’re responsible for minimising additional damage after the initial incident. Imagine a storm blows a section of roofing away. Covering the exposed area with waterproof sheeting shows your insurer that you acted reasonably to protect your property and prevent further damage.

• Provide complete and consistent details. Inconsistent information is one of the most common causes of claim delays. Make sure the details you give in your initial report match those provided to the assessor and in any forms you submit. Even small discrepancies can trigger additional questions or investigations.

• Document every step and stay in touch. Keep a dedicated folder for your claim. Include correspondence, receipts, and notes from phone calls. Following up regularly with your insurer helps keep you informed about progress and any additional information needed.

House Insurance FAQs

What are the most common reasons for Home Insurance claims in South Africa?

Fire, theft, water-related damage, storm and power-surge damage top the list, mostly due to weather extremes, equipment and infrastructure failures, and everyday accidents in both urban and rural areas.

Can a claim be refused due to poor maintenance?

Yes. If damage is the result of wear and tear, or long-standing neglect (like a leaking roof you ignored), claims may be declined. You can protect your cover through regular upkeep and timely repairs in and around your home.

What steps should I take to help my insurer process a claim smoothly?

Act fast: report quickly, document clearly, provide consistent details, and try to prevent further damage if it is safe. Work with assessors and keep communication with your insurer polite. 

Why is under-insurance a serious issue?

If your policy covers only the original value, like ten-year-old furniture still insured at its old cost, the payout could be much less than expected. Leaving you paying for replacements yourself. Update insured values regularly to reflect current market costs.

Do I need separate policies for buildings and contents?

Yes. Building or Property Insurance covers the structure; Home Contents Insurance covers your belongings. A combined policy can be easier to manage and more cost-effective in the long term.

Get a Home Insurance Quote

Looking for affordable insurance for your first home, or reviewing your current policy? Budget Insurance is here to help. Get a Home Insurance quote today, and our friendly team will gladly answer any questions you may have about claims, cover types, or risks to look out for.

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Sources:

 1 Statistics South Africa: Crime in South Africa up in 2022/23 

2 BusinessTech: 11 worst areas for break-ins and home robberies in South Africa 

3 ITWeb: Power surge protection or no claims, say insurers: How to ensure you’re covered

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.