Over 40% of Homeowners Haven't Reviewed Their Insurance Policy in Over a Year — Here's Why That's Risky

Our take

While this survey is US-based, the underlying risk is just as real for South African homeowners. Local building costs have climbed sharply in recent years, and many homeowners' policies are renewed on autopilot without checking whether the sum insured still reflects true replacement value — not market value, not bond balance. For SA homeowners, a few local angles are worth noting. Sectional title owners should verify what the body corporate's master policy covers versus what their own contents and improvements policy needs to fill in. Those in high-risk areas — coastal properties exposed to storm damage, or homes in flood-prone suburbs — should scrutinise exclusions carefully, as standard policies often exclude flood damage entirely. Landlords renting out property need to ensure their policy reflects rental use, since standard homeowners cover may be void if a tenant occupies the property. Buyers who've recently renovated should notify their insurer immediately — undisclosed improvements can give an insurer grounds to reduce or reject a claim. The practical takeaway: schedule an annual review with your broker before your renewal date, not after. Ask specifically what it would cost to rebuild your home at today's rates, and make sure that figure — not the purchase price — is what your policy covers.