New homeowners take advantage – a guide to your home insurance

For many years now, South Africans have been subject to record-high interest rates, tough economic conditions and a gruelling inflation environment. However, since September 2024, things started looking up. Interest rates and overall inflation have slowly started to stabilise, with the Reserve Bank recently cutting interest rates by 25 basis points to 7.50% in January and inflation projected to remain below 4.5% for the first half of 2025, according to the SARB (South African Reserve Bank).

What these numbers point to, is that there is likely to be a surge in first-time homeowners this year as consumers look to capitalise on the lower interest rate. Siyakha Masiye, spokesperson at Miway Insurance, says now is a good time for those looking to purchase their first property to take the leap of faith. “Whether you’re looking to purchase an investment property or to find your new dream home, the latest interest rate cuts are a great opportunity to take your first step on the property ladder,” he says.

While the process of acquiring your first property comes with a multitude of different emotions, such as excitement, uncertainty and stress – there’s one thing new homeowners must not forget to consider during this period – and that is short-term insurance on your new purchase. For new homeowners, personal insurance on your property is likely to be a somewhat complicated and confusing territory to venture into. However, it does not need to be this way.

“While insurance is often viewed as quite an intimidating thing to wrap your head around, there are a few simple yet effective considerations you need to make in order to ensure your home is covered against any unforeseen issues,” says Masiye.

1. Shop around for the right insurance
2. As interest rates bring in more home loan applications to secure a new space, insurance is often included by the lender, but you don’t have to remain with their suggested insurer. You can reach out to your preferred provider ensuring that the lender has knowledge of your updated policy.
3. Having cover on your property while you are paying it off is non-negotiable (as well as once it’s all yours). A variety of risks exist as outlined below.
4. Homeowners Insurance – the building itself
5. Your home is likely to be the biggest financial asset you will own in your life – and a costly one to replace without protection. Homeowners insurance will safeguard permanent structures that falls under the structure of the property based on the risks that the new homeowner selects, such as the building itself, carports, paving, property walls and garages against unforeseen damages such as from fire and storms including wind, flooding, and hail. In essence, this cover ensures the integrity of your property is maintained, enabling the property to be rebuilt if required, but it does not cover you for your personal, portable items within the home itself.
6. Home Contents Insurance – everything under your roof
7. Equally as important as covering the physical structure of your home is ensuring that all your assets within the home are covered too.
8. “Home contents insurance will cover your assets within the home, against factors such as theft, damage, fire, wind, hail, flood or snow. This includes but is not limited to furniture, TVs, clothing, electrical appliances and other personal items. Unfortunately, many make the mistake of believing that their contents will be covered if they have homeowners’ insurance in place. Sadly, this is not the case. For an easy way to remember the difference, contents insurance will cover you for personal belongings kept inside your home, whereas homeowners’ insurance covers immovable aspects of the property,” says Masiye.
9. First-time homeowners must remember to regularly review and update policies as the value of your property and its contents will fluctuate.
10. Maintenance – a crucial step in the process
11. While your insurance is likely to cover you for the unforeseen events listed above, what it will not cover you for is negligence, damages caused by a lack of maintenance or wear and tear on your property. For this reason, it’s a good idea for you to ensure that you take care of your property right from the start. “Conducting regular checks, which includes identifying any leaks or potential malfunctions, will help you identify potential issues and address them before any damage occurs,” says Masiye.
12. He also suggests taking weather conditions and patterns into account. While each region in South Africa has its own unique climate change, all experience wet months and dry months at some point. For this reason, during rainy seasons, it’s important to ensure your gutters are cleared regularly to avoid any blockages, which could result in water damage to your roof.
13. “In the drier seasons, particularly areas such as the Cape where fire outbreaks are common during summer, proactive steps such as clearing dry bushes and shrubs around your home can go a long way towards preventing fire damage to your property,” concludes Masiye.