Insurance Excess Calculator
Find your optimal building insurance excess level — compare premium savings against expected out-of-pocket claim costs for South African property owners
| Excess | Monthly | Annual | Annual Saving |
|---|---|---|---|
| R0 (no excess) | R 229/mo | R 2 750 | — |
| R1,000 | R 211/mo | R 2 530 | R 220/yr |
| R2,500 | R 188/mo | R 2 255 | R 495/yr |
| R5,000 | R 160/mo | R 1 925 | R 825/yr |
| R10,000 | R 133/mo | R 1 595 | R 1 155/yr |
Estimates based on typical SA insurer rate bands. Actual premiums vary by insurer, location, and property risk profile. SASRIA levy and other compulsory charges excluded.
- Compulsory excess: Set by your insurer based on property risk. You cannot lower this below their minimum.
- Voluntary excess: You choose to pay more excess in exchange for lower premiums.
- Geyser excess: Many SA policies have a separate higher excess (R2,500–R5,000) for geyser claims — the most common SA home insurance claim.
- SASRIA: Mandatory riot and civil commotion cover — separate to your main policy, typically R27/month for residential property.
- High-risk areas: Flood-prone or crime-hotspot areas attract higher compulsory excess regardless of voluntary choices.
Understanding Insurance Excess in South Africa How it works • Types • Example
What Is an Insurance Excess?
An insurance excess (also called a deductible) is the amount you agree to pay out of pocket when you make a claim, before your insurer covers the remainder. A claim of R30,000 with a R5,000 excess means the insurer pays R25,000 and you pay R5,000.
A higher excess lowers your monthly premium because you are absorbing more risk yourself. The optimal excess depends on how frequently you expect to claim and the typical size of claims in your area.
Types of Excess in South African Home Insurance
- Compulsory excess: Set by your insurer — you cannot reduce this. It reflects the risk profile of your property and area.
- Voluntary excess: An additional amount you choose to pay, on top of the compulsory excess, in exchange for a premium discount.
- Geyser excess: Many SA policies specify a separate, higher excess for geyser-related claims due to the high frequency of geyser failures in South Africa.
- SASRIA excess: SASRIA (South African Special Risks Insurance Association) provides cover for civil commotion, riots, and public disorder. SASRIA has its own excess schedule.
- Area-specific excess: Properties in flood-prone zones (e.g., KZN coastal areas) or high-crime areas often carry higher compulsory excess.
Worked Example
Nkosi owns a home in Durban North insured for R1,800,000 (buildings) and R250,000 (contents). His current R1,000 excess costs R3,150/month in premiums.
He considers moving to a R5,000 voluntary excess. The insurer quotes R2,205/month — a saving of R945/month (R11,340/year).
Nkosi claims on average every 5 years. His expected excess outlay per year at R5,000 = R1,000/year. His net annual saving = R11,340 − R1,000 = R10,340/year.
The higher excess is clearly beneficial for Nkosi. However, if a cyclone causes a geyser failure and burst pipes requiring a R60,000 repair, and his geyser excess is R2,500, the out-of-pocket total excess on that single claim would be R7,500.
Frequently Asked Questions
What is the typical building insurance excess in South Africa?
Most South African insurers set a compulsory excess of R1,000–R2,500 for standard building claims. Voluntary excess options typically go up to R10,000 or more. Geyser-specific excess is commonly R2,500–R5,000. High-risk areas (flood zones, high-crime suburbs) may carry compulsory excess of R5,000 or higher.
Why do so many South African insurers have a separate geyser excess?
Geysers are by far the most common home insurance claim in South Africa — accounting for approximately 30–40% of all residential claims. A standard electric geyser has a lifespan of 8–10 years and costs R8,000–R20,000 to replace including plumber fees. Because of this high claim frequency, most insurers set a higher specific excess for geyser claims to manage their exposure. Solar geysers and heat pump systems are less frequently claimed.
Should I insure my building for market value or replacement value?
Always insure for replacement value (also called reinstatement value), not market value. Market value includes land — which cannot be destroyed by fire or flood. Replacement value is the cost to rebuild your home from scratch, including materials, labour, architects, and compliance certificates. Most SA banks require you to insure to full replacement value as a bond condition. Under-insurance (sum insured below replacement value) triggers the average clause, reducing every claim proportionally.
What does SASRIA cover and does it have an excess?
SASRIA (South African Special Risks Insurance Association) is a state-owned insurer that provides cover for extraordinary risks including civil commotion, public disorder, strikes, riots, and terrorism — cover that standard insurers exclude. SASRIA is sold as an add-on to your existing policy. For residential property, SASRIA premium is typically R25–R35/month. SASRIA has its own excess schedule, usually R2,500 for residential claims. The July 2021 KwaZulu-Natal and Gauteng riots resulted in the largest SASRIA payout in history (over R35 billion in claims).
How often does the average South African homeowner make an insurance claim?
Industry data suggests South African homeowners make a claim approximately every 5–7 years on average. The most common claim types are: geyser bursts and water damage (30–40%), storm and hail damage (25–30%), theft and burglary (15–20%), and fire (5–10%). In high-risk areas — particularly flood-prone coastal towns or crime-hotspot suburbs — claim frequency can be every 2–3 years.