For most South Africans, owning a home is a major financial milestone, often representing up to 80% of a family’s total wealth. But while it’s a powerful investment, it can also be a major vulnerability. Rising natural disasters, increasing crime, and a fragile economy mean many homeowners are dangerously underinsured. Fires and floods destroy around 20,000 homes a year, while 10,000 geysers burst monthly - proving that sufficient cover isn’t a luxury, but a necessity.
Despite these risks, many South Africans remain underinsured, exposing both their homes and families. According to the 2025 ASISA Insurance Gap Study, the national life insurance shortfall for death, disability, and critical illness was estimated at R50.4 trillion by the end of 2024. On average, individuals have a R3.1 million shortfall in cover, and over 85% of breadwinners lack critical illness protection.
“Approximately 651 South African breadwinners lose their ability to provide for their families every year due to death, disability, or serious illness,” says John Wessels, Executive: Product and Analytics at BetterSure Financial Consultants. “Even with rising living costs, having sufficient cover ensures loved ones can remain financially secure - and keep their homes - during life’s most unexpected events.”
“Information for this article was sourced from Property24.”
