It's What's on the Inside: Why Home Contents Matters

Outside of work, our homes are where we spend most of our time; relaxing, entertaining, and sleeping. We fill our homes with furniture and objects that make the space comfortable and personal. So, it is often the fear of losing it all in a burglary that leads many South Africans to focus on Home Contents when it comes to insurance. However, at Auto & General Insurance, we know that there are additional reasons why Home Contents cover matters.

Home Contents: an overview

When it comes to owning residential property, there are two types of insurance that are essential: Home Contents Insurance and Building Insurance.

• Building Insurance covers the physical structure of your property: the roof, walls, windows, garages, and even swimming pools.

• Contents Insurance is designed to cover the items inside your home, from furniture and electronics to clothing and appliances; making it essential cover, even if you are renting your home.

You don’t need to own a home to be affected by the risks that Contents Insurance protects you against.

5 Common risks to your home contents 

We fill our homes with possessions that hold both financial and sentimental value, and the cost to replace many of them all at once would be extreme. When we think about losing them, our first thought is often theft and burglaries. But there are other events that can result in many—or all—of our possessions being lost or damaged.

1. Theft and burglary

Theft and burglary are some of the most prevalent risks to your belongings. In the 2022/23 period, there were roughly 1.2 million burglaries and home robberies recorded in South Africa1, equivalent to nearly 3,500 incidents daily. It’s not only the loss of valuable items such as electronics, jewellery, or sentimental possessions that is distressing. But beyond the emotional impact, the financial burden of replacing these items can be significant.

2. Fire damage

Fire is one of the most destructive forces that can affect a home, often resulting in the complete loss of your possessions. Whether caused by an electrical fault, a cooking accident, or even a wildfire, the aftermath of a fire is devastating. Furniture, clothing, electronics, and personal mementoes can be lost in an instant. Without Contents Insurance, the cost to replace these items and begin rebuilding and restoring your home is often unaffordable.

3. Water damage

Burst pipes and water leaks can cause extensive damage, particularly if they occur when you aren't at home, or the pipe is embedded in a wall. Aside from the cost of any cleanup and repairs, you might also be sitting with damaged carpets, furniture, and electronics. With Contents Insurance, you won’t bear the financial burden when water wreaks havoc on your home.

4. Natural disasters

Recent extreme weather events serve as a reminder of the devastation that can follow natural disasters2. Any ingress of water into your home can result in substantial damage, whether it is an inch deep or covers your knees. And the risk doesn't only come from traditional flooding. Hail, strong winds, and falling trees can damage the structure of your home along with ruining too many possessions to replace affordably.

5. Accidental damage

Accidents happen, and sometimes they result in the unintentional damage of your belongings. From a boisterous pet knocking your TV over, to you accidentally dropping your laptop, these are often items we cannot afford to replace immediately. In families, the hustle and bustle of daily life increases the likelihood of such incidents.

Why Home Contents matters

The risks mentioned above are not just hypothetical; they can have real and significant impacts on your life. The cost of replacing even a few stolen or damaged items can be substantial, but Home Contents Insurance ensures you aren't burdened with these costs. Here’s why it’s essential:

• Financial protection: Naturally, the primary benefit of house Contents Insurance is the financial protection it offers. The costs of replacing high-value items, such as electronics, furniture, or appliances, can be overwhelming, especially if multiple items are lost or damaged at once. Without insurance, you will either have to do without certain items, dip into your savings or take on debt to cover the cost of replacing your belongings.

• Comprehensive coverage: This type of insurance is designed to cover a wide range of risks, including theft, fire, water damage, natural disasters, and even accidental damage. The best Contents Insurance also covers damage to electronics caused by power surges following power cuts. Not forgetting, is also covers the cost of replacing locks and keys following a burglary and providing a security guard if the property cannot be secured immediately.

• Accidental damage protection: Accidents can happen in the blink of an eye. Whether it’s a spilt cup of coffee on your laptop or a broken antique vase, accidental damage can be frustrating and costly. House Contents Insurance is a practical safeguard that helps you maintain the quality and functionality of your belongings, even in the face of life’s little surprises.

• Alternative accommodation: If your home becomes uninhabitable due to an insured event, such as a fire or severe water damage, your insurance can cover the cost of temporary accommodation. It's important that your family has a safe and comfortable place to stay following a traumatic event, and while your home is being repaired. This removes the worry of affording temporary accommodation, allowing you to focus on restoring your home.

• Customisable policies: Every home and family are unique, and so are their insurance needs. This means your insurance should be customisable, allowing you to tailor cover according to your needs. This can be especially useful if you have a lot of high-value jewellery, art, or electronics. This also allows you to adjust your coverage as your needs or risks change.

Get a Home Contents Insurance quote from Auto&General 

Invest in your family's future by getting a Home Contents Insurance quote from Auto&General. Our team is also ready to answer any questions you may have and help you find the ideal policy for your needs. Whether you’re in a studio apartment with a few belongings or in a sprawling family home with multiple furnished rooms.

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Sources:

[1] Statistics South Africa:  https://www.statssa.gov.za/?p=16562

[2] TimesLive: https://www.timeslive.co.za/news/south-africa/2024-07-08-we-lost-everything-more-cold-fronts-to-wallop-cape-of-storms/

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.