What’s the difference between building insurance and home contents insurance?

What type of insurance do I need for my home?

This is a common question asked by South African homeowners and renters. At the end of the day, we need to keep our assets protected without overspending on insurance.

It’s crucial to get the right insurance when it comes to your home and home contents. Everyone needs insurance options specific to their needs. We’re here to help clarify whether you need building insurance, home content insurance or both.

What is building insurance?

This type of insurance is also known as homeowner insurance. It is important to look into if you own a home or have a home loan. If you get building insurance, you’re covered for damages to the physical structures on your property. And, when insuring with one of South Africa’s major companies, they’ll often cover geysers, gate motors, garages, boreholes, tiles, bricks, pools, patios, pumps pipes and even tennis courts.

Your building will be insured against damages caused by weather, such as fires and floods, malicious damages, attempted break ins and successful break ins.

Home contents insurance

Home contents insurance is also known as household insurance. With this type of insurance, your actual home items – the things that make your house a home – are insured. You can insure TVs, wine glasses, antiques, garden furniture – almost anything – with this type of insurance.

Usually items such as bicycles jewelry, cell phones, contact lenses, prescription glasses, designer handbags, watches and laptops need additional insurance if they’re often taken outside of your home. You can get portable possessions insurance for such items.

Once you get comprehensive home contents insurance you will be covered for what you’ve chosen to cover. Your items will then be covered for any loss or damage caused by weather, fire, theft or attempted theft. This is a great option for homeowners and renters.

Building insurance and home contents insurance

If you own or are paying off a home, building insurance and home contents insurance is ideal for you. When it comes to a sectional title, things may get a little more complicated. If you’re unsure you can find out more about insurance in South Africa.Find out more about insurance in south Africa here.