
When you think back to the state of your home when you first bought it, it is likely that it has undergone considerable changes over time. Alterations, whether through renovations or upgrades, play a crucial role in turning a standard building into a personalised and comfortable living space. As your household expands or your needs evolve, you may find yourself wanting to modify your property further. In doing so, it is essential to review and adjust your property insurance to ensure it remains suitable for your updated home.
Key Takeaways
- Regularly Review Your Policy to Avoid Underinsurance: Many homeowners underestimate the value of their belongings, leading to insufficient cover. Ensuring that your policy reflects the current replacement cost of your home and possessions helps prevent financial shortfalls in the event of a claim.
- Understand Policy Exclusions and Additional Cover Options: Standard home insurance may not cover natural disasters, accidental damage, or power surges unless explicitly added. Knowing what your policy includes and making necessary adjustments ensures comprehensive protection.
- Maintain Security Measures and Keep Records: Insurers may require specific security measures, such as alarms and burglar bars, for claims to be valid. Keeping a detailed inventory, including receipts and photographs of valuable items, provides proof of ownership and simplifies the claims process.
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What Is Home Insurance?
Home insurance serves as a safeguard for homeowners, providing financial protection against potential structural damage to their property. This type of cover applies to the physical structure of the house, including both its interior and exterior, ensuring that the building itself remains protected. The policy extends to permanent fixtures on the property, such as walls, fences, driveways, and swimming pools, offering financial support for repairs or rebuilding if the insured damage occurs.
However, home insurance does not cover personal belongings. Any movable possessions—items that can be taken with you if you relocate—fall under home contents insurance rather than property insurance. To ensure these belongings are protected, a separate home contents insurance policy is required.

Understanding Different Types of Home Insurance Policies
Home insurance policies differ in coverage, exclusions, and optional benefits. While some offer comprehensive protection, others have limitations that could leave you financially exposed. Understanding these differences ensures your policy meets your needs.

Building Insurance vs Home Contents Insurance
Home insurance generally falls into two categories: building insurance and home contents insurance. Building insurance covers the physical structure of your home, including walls, the roof, floors, and permanent fixtures like built-in cupboards, plumbing, and electrical wiring. It protects against structural damage from fires, storms, and burst pipes. Home contents insurance covers personal belongings such as furniture, electronics, clothing, and appliances, ensuring protection against theft, fire, and accidental damage. Some insurers offer combined policies for more comprehensive cover.

Cover for Natural Disasters and Weather-Related Damage
Not all policies automatically include cover for natural disasters. Floods, earthquakes, and hailstorms may be excluded unless specifically added, particularly in high-risk areas. Fire and lightning damage are usually covered, but additional protection may be needed for electrical surges. Subsidence and ground movement, which affect homes built on clay-rich soil or near mining areas, are often excluded unless explicitly included in the policy.

Accidental Damage Cover
Basic policies do not usually cover accidental damage, meaning broken appliances, cracked countertops, or smashed windows may not be included. To protect against such mishaps, homeowners may need to add accidental damage cover. This is particularly useful for households with young children or pets, where unintentional damage is more likely. Reviewing your policy can help prevent unexpected repair costs.
If you’ve recently renovated your home, you might need to update your insurance policy to reflect the increased value. Whether it’s a kitchen remodel or a new swimming pool, failing to disclose these changes could leave you underinsured. Before making upgrades, it’s worth exploring the best ways to finance home improvements to ensure you’re getting the best return on investment while staying financially secure.

Home Insurance Checklist
Review Your Home Insurance Against the Value of Your Belongings
Many people underestimate the total value of their household possessions as they accumulate new items over time. It is easy to overlook the worth of clothing, kitchen appliances, and other essentials, leading to a situation where your insurance cover does not fully protect your belongings. In fact, research indicates that many policyholders only insure around 55% of their home contents’ replacement value.
This shortfall can leave you financially vulnerable if a fire, burglary, or other disaster results in significant losses. However, even smaller claims may be affected. Insurers use a principle known as average, which reduces payouts when your cover is insufficient. For example, if the total value of your home contents is R1 million, but your policy only covers R500 000, your insurer will only pay 50% of any claim, regardless of the amount claimed.
If you own rental properties or are involved in property investment, it’s crucial to have the right coverage. A standard home insurance policy may not be sufficient for properties that are flipped or rented out. Investors should ensure they’re covered for damages, liability, and even vacancy periods. For those considering property investment, learning more about flipping houses can help maximise profits while mitigating financial risks.
Ensure Your Insurance Covers The Replacement Value Of Your Possessions
When taking out insurance, it is crucial to cover your belongings based on their current replacement cost rather than the original purchase price. Due to inflation and currency fluctuations, the cost of replacing an item today may be significantly different from what you originally paid. For example, a home appliance bought for R15 000 a few years ago might now cost R20 000 to replace. Conversely, an iPhone 14 insured for R22 000 three years ago may now only require R16 000 for a replacement. Regularly reviewing your policy helps prevent overpaying on premiums while ensuring that your coverage accurately reflects inflation and any new purchases. This reduces the risk of being underinsured or facing shortfalls when making a claim.
Enhancing Your Home’s Security
Your home insurance policy may require specific security measures, such as a monitored alarm system or burglar bars on all accessible doors and windows, to remain valid. It is essential to review the security conditions outlined in your policy and confirm that you meet these requirements. Failure to comply could result in your insurer rejecting any claims you submit.
Additionally, if you install additional security features, such as electric fencing or CCTV surveillance, inform your insurer, as these upgrades could lower your premiums. Always activate your alarm system and secure all entry points before leaving your home. If a burglary occurs while your alarm was disarmed or doors were left unlocked, your insurer may have grounds to deny your claim. Carefully review your policy document to understand your obligations.
Secure Valuable Possessions
Failing to adequately protect high-value belongings such as jewellery, artwork, and electronics can result in increased insurance premiums. Insurers may either require additional coverage or raise your rates if these items are not stored securely. To minimise risk, consider using a high-quality safe for added protection where necessary.
Declare Portable Possessions If Required
Some home contents insurance policies automatically cover portable belongings such as laptops and cameras when kept inside your home, even if you haven’t listed them separately. However, to ensure they are insured outside the home, additional cover is often required. Certain policies may exclude easily portable items from coverage altogether unless they are explicitly specified in your policy. Always check the policy wording carefully and provide all necessary details to avoid gaps in coverage.
Inform Your Insurer About Home Upgrades
If you make any modifications to your home, such as installing solar panels, building extensions, or upgrading fixtures, failing to notify your insurer could result in gaps in your home building cover. These changes can increase your property’s value and alter the level of risk, which may affect your policy. Always update your insurer about any structural or significant improvements to ensure your home remains adequately covered.
Maintain Your Home and Protect Its Contents
Home insurance policies generally require you to take reasonable steps to safeguard your property and belongings against damage, theft, and deterioration. If your insurer determines that negligence or recklessness contributed to a loss, it may refuse to pay out a claim.
For example, leaving valuable tools in an unsecured garden or failing to lock doors could provide grounds for a rejected claim in the event of theft. Similarly, ignoring maintenance issues such as leaks, mould, or structural damage can lead to costly repairs, with insurers potentially increasing premiums due to heightened risk. Regularly review security measures and carry out routine maintenance to reduce the likelihood of claim disputes.
Mark Your Renewal Date in Your Calendar
Ensure you are aware of your policy’s renewal date, as this is typically when your premium will increase. Many insurers implement price hikes that exceed inflation, so it is worth comparing options to confirm that you are still receiving a competitive rate. Often, your current insurer may be willing to offer a lower premium if you question the increase. Alternatively, you could explore switching to a digital insurer that provides an instant and transparent online quote without requiring negotiations with a call centre agent.
To ensure your insurance provider adheres to industry standards, consult the Financial Sector Conduct Authority (FSCA), South Africa’s regulatory body overseeing the non-banking financial services industry.

Keeping Records of Your Possessions
Maintaining a detailed record of your possessions is essential, as it provides proof of ownership if items are stolen or damaged, making it easier to process insurance claims.
- Utilise online platforms and mobile applications designed for item valuation, ensuring they include automatic value adjustments to account for inflation.
- Capture clear photographs of your belongings as part of your inventory. Each image should be accompanied by a detailed description, including the item’s brand, model, or serial number, the date it was purchased or acquired, and its estimated value.
- Retain purchase receipts for newly acquired items, as these serve as verification of ownership and assist in determining replacement costs when filing a claim.
- Store printed copies of your inventory in a secure yet accessible location, ensuring that at least one copy is kept off-site to prevent loss in case of fire, theft, or other unforeseen events.
- Safeguard valuation or appraisal certificates for high-value jewellery, artwork, and other individually insured items, keeping them with your inventory records.
- When using digital inventory systems, upload scanned copies of valuation certificates, along with serial and model numbers, and current retail prices to maintain an up-to-date and comprehensive record.
Conclusion
Regularly reviewing your home insurance policy is essential to ensure it remains suitable for your evolving needs. As your home changes through renovations, new purchases, or security upgrades, your policy should be adjusted to provide adequate cover. Understanding the difference between building and contents insurance, knowing what exclusions apply, and ensuring your possessions are insured at their current replacement value can help prevent financial shortfalls. Additionally, maintaining security measures and keeping accurate records of your belongings will simplify the claims process and protect you from unexpected losses. By staying informed and proactive, you can ensure your home insurance policy provides the right level of protection when you need it most.
Frequently Asked Questions
Home insurance covers the structure of your property, including walls, the roof, and permanent fixtures, while home contents insurance protects personal belongings such as furniture, electronics, and appliances. A combined policy may offer both types of cover for comprehensive protection.
You may be underinsured if your policy does not cover the full replacement value of your home or belongings. Regularly reviewing your coverage, considering inflation, and updating your insured values after renovations or new purchases can help ensure adequate protection.
Not all policies include cover for natural disasters such as floods, hailstorms, or earthquakes. Some insurers require homeowners to add these as optional extras. Checking your policy details will confirm whether you have the necessary protection.
You can lower your premium by installing security measures such as burglar alarms, security gates, or CCTV systems. Bundling your home insurance with other policies, increasing your excess, and comparing quotes from different insurers can also help reduce costs.
Any structural changes, such as renovations, extensions, or installing solar panels, should be reported to your insurer. These modifications can affect your home’s value and risk profile, and failing to update your policy could result in gaps in coverage or claim rejections.
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