Moving into a new home is an exciting milestone, but it also exposes you to new financial risks if your property and belongings are not properly insured. In South Africa, household insurance plays a critical role when buying, selling, renting, or relocating and misunderstanding it can lead to costly mistakes. This article explains how household insurance works in South Africa when moving, what cover you need, when it should start, and how to avoid common pitfalls.
What Is Household Insurance in South Africa?
Household insurance generally consists of two separate policies:
1. Building Insurance
Covers the physical structure of the property, including:
- Walls, roof, floors
- Built-in cupboards
- Plumbing and electrical systems
- Garages, boundary walls, and pools
2. Household Contents Insurance
Covers movable items such as:
- Furniture
- Appliances
- Electronics
- Clothing and personal belongings
These policies may be combined or taken separately, depending on whether you own or rent.
Why Household Insurance Is Critical When Moving
Moving is one of the highest-risk periods for:
- Theft
- Accidental damage
- Fire
- Storm damage
- Transit losses
South Africa’s crime rates and weather conditions make proper cover essential, especially during relocation.
Insurance When Buying a Property
When Should Building Insurance Start?
From the date of registration, the buyer becomes responsible for insuring the property.
However:
- Banks require building insurance before bond registration
- Most banks offer in-house insurance, but you are not obliged to accept it
Tip: Shop around, independent insurers often offer better value.
Is Building Insurance Mandatory?
If you have a bond:
- Yes, required by the bank
If you’re a cash buyer:
What Building Insurance Should Cover
Ensure your policy includes:
- Replacement cost (not market value)
- Fire and lightning
- Storm and flood damage
- Subsidence and landslip
- Burst pipes and geysers
- Riot and strike cover (important in SA)
Household Insurance During the Moving Process
Are Your Belongings Covered in Transit?
Many standard contents policies limit or exclude cover while goods are in transit. You should:
- Inform your insurer before moving
- Add All Risk or Transit Cover
- Confirm whether the movers’ insurance is primary or secondary
Using Professional Movers
Reputable movers often have:
- Goods-in-transit insurance
However:
- Coverage may be limited
- Claims can be complex
- High-value items may be excluded
- Best practice: Insure valuables separately.
Common Household Insurance Mistakes When Moving
1. Underinsuring Your Home
Insuring for market value instead of replacement value can result in partial claim payouts.
2. Forgetting to Update Address
Your policy may be invalid if your insurer isn’t notified of the move.
3. Not Declaring Security Measures
Failing to declare:
- Alarm systems
- Armed response
- Burglar bars
- can result in rejected theft claims.
4. Overlooking Special Items
Jewellery, art, and high-end electronics often require specified cover.
Household Insurance and Bond Requirements
Banks may:
- Automatically load insurance premiums onto your bond
- Require proof of insurance annually
You are legally allowed to:
- Choose your own insurer
- Cancel bank-linked insurance with notice
- Short-Term Insurance Options in South Africa
Common household insurers include:
- Santam
- OUTsurance
- Discovery Insure
- Momentum Insure
- MiWay
- King Price
Always compare:
- Excess amounts
- Claim turnaround time
- Policy exclusions
Final Thoughts
Household insurance is not just a legal or bank requirement in South Africa; it is a critical financial safeguard, especially during a move. Whether you are buying, selling, or renting, ensuring the correct cover at the right time can protect you from devastating losses and unnecessary stress.