As South Africa faces growing water scarcity, more homeowners are turning to boreholes to improve self-sufficiency and reduce reliance on municipal supply. The Department of Water and Sanitation estimates that between 80,000 and 100,000 boreholes are installed each year. But while this offers a reliable alternative water source, borehole installation comes with regulatory and insurance considerations that many homeowners overlook.
Before any drilling begins, a hydrogeological study must be conducted to assess water quality and availability. Homeowners are also required to obtain a water use licence, an Environmental Impact Assessment (EIA), and a Drilling Permit from the relevant municipal authorities.
Borehole drilling must comply with strict technical, environmental, and safety standards as outlined by the Department of Water and Sanitation, the National Water Act, municipal by-laws, and the South African National Standard (SANS) 10299. Service providers must also meet safety regulations to protect their workers during the installation.
From an insurance perspective, non-compliant installations can be costly. Many insurers will not cover damage caused by a borehole that doesn’t meet regulatory standards—similar to how structural claims are assessed based on whether a property was built by a qualified contractor.
Most local insurers, including MiWay, cover boreholes as part of their home insurance policy, under permanent fixtures and improvements. However, it’s essential to inform your insurer once the borehole is installed so it can be added to your policy.
Homeowners should also be aware of third-party liability. If a borehole causes damage to a neighbour’s property during installation, cover may apply—but only if the work was done correctly and by a qualified professional.
Lastly, routine maintenance is key. Regularly checking for leaks, inspecting the pump, and cleaning filters ensures both safe water use and a strong insurance claim, should something go wrong. In short, installing a borehole is a smart investment—but it must be done the right way, with proper compliance, expert installation, and ongoing care.
