In short: Building insurance (also called homeowner’s insurance) covers the structure of your home: walls, roof, fixed fittings, geysers and permanent outbuildings. Contents insurance (household insurance) covers what you would take with you if you moved: furniture, appliances, clothes and electronics. Owners usually need both. Renters only need contents cover, because the landlord insures the building. If you have a home loan, the bank will require building insurance. Insure both for the full replacement value, or a claim can be cut. This is general information, not insurance advice.
The simple test
Imagine turning your home upside down. What falls out is contents. What stays attached is the building.
| Building insurance | Contents insurance | |
|---|---|---|
| Covers | Structure, roof, walls, floors, built-in cupboards, fixed kitchen units, geyser, plumbing and wiring, fixed outbuildings, walls and gates (depending on policy) | Furniture, appliances, TVs, clothing, linen, kitchenware, and other movable items in the home |
| Who needs it | Owners. Often compulsory with a home loan | Owners and renters |
| Sum insured based on | Cost to rebuild, not the market price of the house | Cost to replace everything with new items |
| Sectional title | Usually insured by the body corporate, and paid through your levy | Your own responsibility |
Things that fall between the two
- Solar panels and inverters: fixed systems usually fall under building cover, but some insurers ask you to list them. Check, as they are expensive to replace. See solar panel financing.
- Laptops, phones and jewellery taken out of the house: contents cover usually only protects items at home. For items you carry, you need “all risks” or portable possessions cover.
- Burst geysers: the geyser and resulting damage to the building are usually under building cover. Damage to your carpets and furniture may be under contents.
- Gates, walls and pools: some policies include them, others limit cover for storm or flood damage.
Underinsurance and the average clause
Most South African policies have an average clause. If you insure your contents for R150,000 but they would cost R300,000 to replace, you are only 50% insured. On a R40,000 burglary claim, the insurer may then pay only R20,000 (less your excess).
To avoid this:
- List your contents room by room and price them at today’s replacement cost.
- For the building, use the rebuild cost, not what you paid for the house. Your insurer or a quantity surveyor can help.
- Update the sums insured every year and after big purchases or renovations.
Riot and civil unrest cover
Damage from riots, strikes and public disorder is covered by SASRIA, the state-owned special risks insurer, not by the standard policy wording. It is usually added to your building and contents policy for a small extra premium. Check that it is on your schedule. See sasria.co.za.
Keeping premiums down
- Fit security your insurer recognises, such as burglar bars, an alarm with armed response or security gates, and tell the insurer.
- Choose a higher excess only if you can pay it.
- Put building and contents with one insurer if it offers a combined discount.
- Do not overinsure either. You will not be paid more than the actual loss.
For insurer comparisons, see OUTsurance vs Pineapple.
If a claim is rejected
- Ask the insurer for the reason in writing and use its complaints process.
- If you are still unhappy, the National Financial Ombud Scheme (NFO) handles homeowner and contents insurance complaints for free: 0860 800 900, or nfosa.co.za.
What to confirm on your schedule
- Both sums insured, and when they were last updated.
- Whether SASRIA cover is included.
- Any security conditions, such as a working alarm.
- What is excluded, for example wear and tear, gradual leaks or damp.
Last checked: 16 October 2026. This article is general information and not insurance advice. Cover differs by insurer and policy, so read your policy wording.