This post was published on Jan 25, 2017 | Updated on Oct 15, 2025
- Building Insurance (also called “homeowners” or “buildings cover”) — covers the physical structure
- Household / Contents Insurance — covers your personal possessions inside the home
Understanding the difference (and knowing when you need one or both) can save you big headaches down the line. Let’s unpack this.
Household vs Building Insurance: Which One Do You Really Need?
When South Africans talk about “home insurance,” it often sounds like a single thing. But actually, it’s two different types of cover for very different parts of your home life:
Two different types of Cover
Think of your house as a boerewors roll at a Saturday braai:
- The roll (structure) = Building Insurance
- The boerewors and sauces (contents) = Household Insurance
Without both, you don't really have a proper meal - and if either part goes missing, you're in for a disappointment. Same with your home: both covers matter.
What Building Insurance (Homeowners) covers — and doesn’t
Building insurance typically covers:
- Fire, lightning, explosion
- Storm, wind, flood, hail, natural perils
- Damage caused by bursting or leaking pipes, water systems
- Impact by vehicles, falling trees, aircraft
- Theft where force and break-in damage the structure itself
- Replacement of keys, locks, remote controls
- Sometimes accidental damage (as an optional add-on)
- Home emergency services (e.g. plumbing, locksmith, glazier) as a built-in benefit to some limit (for iWYZE, up to R2 000 or two incidents per year)
But, and this is key: building insurance does not generally cover your movable items like your TV, laptop, furniture, clothes, etc. That belongs under the contents (household) cover.
Also note: any cover is subject to the policy wording, exclusions, excess, and limits. Damage from neglect, wear and tear, or termite infestation, for instance, may be excluded or require extra cover.
Building Insurance in real life South African stories
Example 1:
You live in Durban, and a storm causes a tree to fall onto your roof. Building insurance helps you rebuild the damaged roof and walls. But if the same storm flooded inside and ruined your curtains, carpet, and sound system, you'll need household cover to replace those.
Example 2:
A Jo’burg summer storm brings hail and strong winds. Your roof tiles crack and water seeps through, damaging the ceiling. Your building insurance sorts out the roof and ceiling repair, saving you from a hefty builder’s bill. But if your furniture gets water-damaged, that’s for household insurance.
What Household (Contents) Insurance covers — and doesn’t
Household Contents insurance typically covers:
• Covers loss or damage to your possessions (contents) inside the home due to fire, lightning, explosion• Covers theft or attempted theft (with forcible, violent break in) causing damage to your contents
• Natural disasters (storms, floods, hail, etc.) that affect the contents
• Burst, leaking, overflowing water systems (pipes, geysers, tanks) that damage contents
• Built-in benefits such as householder liability cover (if someone is injured in your home)
However, household contents cover does not pay to fix structural features like walls, roofs, foundations, or the shell of your home. That remains the domain of building cover.
Also, contents cover may have sub limits: e.g. for jewellery, artwork, electronics, etc. If you have high-value items, you may need to schedule or "add on" extra cover.
Household Contents Insurance in real life South African stories
Example 1:
You stay in a townhouse in Cape Town. A burst geyser floods your lounge and damages your TV, carpets, dining chairs, and stereo. Your contents cover would help you repair or replace those. But if the flood caused structural damage to the floor slab or brick walls, that damage would be claimed on your building cover (if you have it).
Example 2:
Your Gqeberha home is broken into. The burglars steal your TV, laptop, and a sound system. Household cover replaces or pays out for those stolen items. But the broken door frame and locks? That’s a building cover claim.
Who should take which?
- Homeowners: need both (banks often require building insurance if you have a bond).
- Tenants/Renters: don't need building cover, but should get household insurance. Landlords typically handle building insurance, so you don’t need it.
- Sectional title owners: check if your body corporate covers the building. If yes, you'll likely just need household cover.
If you’ve renovated or have luxury interiors, your contents cover will be more important (and may require higher limits).
Key differences side-by-side
| Aspect | Building Insurance | Household (Contents) Insurance |
| What’s insured | The fixed, structural parts (walls, roof, foundations, built-in features) | Movable possessions inside (furniture, electronics, clothing, appliances, etc.) |
| Structural damage | Covered (storms, fire, impact, etc.) | Not covered |
| Possession damage | Only if contents are built in (e.g. built-in cupboards) and tied to the structure | Covered (within policy limits) |
| Water / burst pipe damage | Often covers leaks or bursting pipes affecting structure | Covers damage to contents from water leaks / pipe failures |
| Liability / third-party | May include structural features such as keys/locks, emergency services | Includes householder liability (injury to someone in your home) |
| Optional add-ons | Accidental damage to structure, home emergency services | High-value items, cover for items outside the home (if allowed) |
| Who should have it | Owners (or bondholders requiring cover) | Owners, renters (tenant needs contents cover even if not owning structure) |
WYZEmoves - Tips for choosing & combining both covers
- Calculate replacement value properly
For contents, do a walk-through and list your major items (TV, fridge, laptops, furniture) with their current replacement cost. - Understand limits and sub-limits
Know how much is allowed for jewellery, electronics, etc. - Match your premiums to risk
If you live in a flood-prone area (e.g. low-lying near rivers), ensure your policy includes or specifically covers such perils. - Check excesses
Higher excess = lower premium. But don’t set it so high you can’t afford it when you claim. (include link to excess blog) - Review annually
As your possessions change (new gadgets, renovations) or structural value changes, update your cover. - Document your possessions
Keep photos, receipts, serial numbers — that helps your household contents claims be processed smoothly.
Before we wrap up, we asked an industry expert for her perspective on why so many South Africans misunderstand “home insurance” — and how to avoid costly mistakes.
“As an Ombudsman Complaints Resolution Specialist, I see it all: most disputes come from not knowing what you are, and what you are not covered for.
Think “home insurance” is one thing? Think again! Your home actually needs two types of cover:
1. Building Insurance – protects the structure (walls, roof, foundations)
2. Household / Contents Insurance – protects the stuff inside such as TVs, laptops, and furniture. Think of it this way: if you had to turn your home upside down and shake it, everything that falls out is what’s classified as your contents.
Without both, your home isn’t fully covered. Simple as that.
Two Covers, One Home
Your home = a boerewors roll at a Saturday braai:
The roll = Building Insurance
The boerewors & sauces = Contents Insurance
Lose either, and your meal or your home just isn’t complete.
Building Insurance Covers: Fire, lightning, explosion Storms, wind, hail, floods Falling trees, vehicles, aircraft Theft with break-in Optional accidental damage & home emergency services
Example: A storm in Durban knocks a tree onto your roof. Building cover fixes the roof, but water ruins your couches? That’s household cover. Whereas Household / Contents Insurance Covers: Loss/damage to possessions from fire, storm, flood, Theft with forced entry.
Heads up: It doesn’t fix your walls or roof, that’s building cover. High-value items such as jewellery, electronics, artwork may need extra cover (specify on the policy).
Quick Tips for Smart Cover
Walk through your home & list major items
Check limits & sub-limits
Check excesses
Review annually
Document possessions (photos, receipts, serial numbers)
Always remember to:
Ask questions
Read your policy carefully
Choose cover that fits your needs AND your budget
Remember that the right cover protects more than your home—it protects your peace of mind & financial wellbeing.”
- Mpho Arends
The information provided by Mpho is a great reminder that true peace of mind comes from understanding your cover before you need it. Whether you own or rent, make sure both your building and contents are protected — because together, they safeguard your home and your financial wellbeing.
The WYZE takeaway
Your home is more than just bricks or furniture — it’s both. Building Insurance + Household Insurance = complete cover. Don’t wait until a storm or burglary reminds you of the gap. Getting both building and household insurance is the smart way to keep your South African home fully covered.
