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Understanding Building Coverage - A guide to home owners insurance

Date : 22 Jun, 2023

Author : Anika le Roux

Owning a home is a significant achievement, representing years of hard work and financial planning. As a responsible homeowner, it is essential to safeguard your investment against unforeseen events. Home-Owners Insurance provides valuable protection, with one crucial component being building insurance. In this blog post, we will explore the importance of building insurance, what it encompasses, and how it can safeguard your home from various risks. However, it's crucial to remember that wear and tear is not covered by building insurance, emphasizing the need for regular maintenance and care of your property.

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What is building insurance?

It is specifically designed to protect the physical structure of your home, including any outbuildings such as garages, sheds, or guesthouses. In the event of damage or destruction caused by covered perils, building insurance ensures that you can repair or rebuild your property without shouldering the entire financial burden yourself.

Covered Perils and Accidental Damage:

Building insurance typically includes protection against a range of perils, such as fire, lightning, wind, storm, hail, explosions, and theft. These perils can cause significant damage to your property, leaving you with excessive repair or reconstruction costs. By having building insurance, you can rest assured knowing that your insurance policy will help alleviate the financial burden of such events.

Additionally, some Home-Owners Insurance policies offer coverage for accidental damage to the building. Accidents happen, and unintentional harm to the structure of your home can occur in various ways, like a broken window, a hole in the wall, or damage caused by a falling object. With accidental damage coverage, your insurance policy can provide the necessary funds to repair these unexpected mishaps, ensuring your home remains a safe and comfortable place for you and your loved ones.

Power Surge Coverage:

Power surges are another potential threat to your home's electrical systems and appliances. A sudden surge in electricity can fry your electronics, damage your wiring, or even cause a fire. Thankfully, some Home-Owners Insurance policies offer coverage against power surges. This means that if a power surge damages your electrical systems or appliances, your insurance policy can help cover the cost of repair or replacement, reducing your out-of-pocket expenses.

It is important to take note of your specific insurer’s requirements regarding this cover. It might be an optional extension that needs to be selected and it may be limited to a specific amount. An insurer may also require additional power surge protection on the distribution board of your home before power surge cover is provided.

The Importance of Maintenance:

While building insurance is vital for protecting your home, it is crucial to understand its limitations. Wear-and-tear, which refers to the gradual deterioration of a property due to age, regular use, and lack of maintenance, is not covered by building insurance. Insurance companies expect homeowners to take responsibility for the upkeep and maintenance of their homes.

Regular maintenance is essential for preserving the value and integrity of your property. By addressing minor repairs and conducting routine inspections, you can identify potential issues before they escalate into more significant problems. Neglecting maintenance can lead to a decrease in your claim amount or, in some cases, prevent you from making a claim altogether if the insurer determines that the damage resulted from neglect or lack of upkeep.


Building insurance provides crucial protection for your home's and outbuildings' physical structure. It offers financial assistance in repairing or rebuilding your property in the event of covered perils, accidental damage, or power surges. However, it's important to note that wear-and-tear is not covered, underscoring the need for regular maintenance and care of your home. By being proactive in maintaining your property, you can ensure that your building insurance remains effective, providing you with peace of mind and protecting your investment for years to come.

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