Property Insurance Claim Calculator
Estimate your insurance payout after property damage — accounting for the average clause if underinsured, depreciation by item age and type, and your policy excess. Check if you are underinsured before you need to claim.
| Damage / loss amount | R 150 000 |
| Average clause reduction (insured 81.8% of actual value) | −R 27 273 |
| Depreciation (50.0% — 5 yrs × 10.0%/yr, capped 80%) | −R 61 364 |
| Excess / deductible | −R 5 000 |
| NET PAYOUT | R 56 364 |
How SA Property Insurance Claims Are Calculated How to use • Average clause • Example
How to Use This Calculator
The Claim Estimate tab calculates your expected insurance payout step by step: starting from the damage amount, applying the average clause if you are underinsured, deducting depreciation based on the item's age and type, then subtracting your excess. The Underinsurance Check tab lets you see whether your current sum insured matches the actual replacement cost — and how much less you'd receive on any claim if it doesn't.
The Average Clause Explained
South African short-term insurance policies contain an average clause (also called the co-insurance clause). If your property is insured for less than its actual replacement value, you are treated as a co-insurer for the uninsured portion. This means every claim is reduced proportionally — not just total-loss claims.
Example: If your home is insured for R1,500,000 but costs R2,000,000 to rebuild, you are 75% insured. A R200,000 storm damage claim becomes a R150,000 payout — the insurer pays only 75%. You pay the other R50,000 out of pocket.
Worked Example — Geyser Claim
Zanele's 8-year-old geyser bursts, causing ceiling and flooring damage. She gets a repair quote of R18,000. Her excess for geyser claims is R3,500.
Her home is insured for R1,800,000 but its actual replacement cost is R2,400,000 — she is 75% insured.
Average clause: R18,000 × 75% = R13,500.
Geyser depreciation: 8 years × 10%/yr = 80% depreciation (capped) on the geyser portion.
After depreciation: R13,500 × 0.20 = R2,700.
Less excess: R2,700 − R3,500 = R0 payout — excess exceeds the depreciated amount.
By updating her sum insured to R2,400,000 and choosing a lower excess, Zanele could have received a meaningful payout.
Frequently Asked Questions
Why is geyser failure the most common home insurance claim in South Africa?
South Africa has a very high density of electric geysers — most homes have a roof-mounted geyser, and they have a typical lifespan of 8–12 years. Older geysers fail regularly, causing water damage to ceilings, floors, and walls. Replacement cost is R8,000–R15,000 including installation. Geyser claims account for over 30% of all household insurance claims in SA. Many policies have a specific excess and depreciation applied to geyser claims.
What is SASRIA and when do I claim from them instead of my insurer?
SASRIA (South African Special Risks Insurance Association) is a state-owned insurer that covers damage caused by riots, civil commotion, strikes, public disorder, and political violence. Standard insurance policies exclude these risks. SASRIA cover is sold as an add-on through your insurer. If damage is riot-related, submit your claim to your insurer who passes it to SASRIA. Contact SASRIA at 0860 727 742 or www.sasria.co.za.
How often should I update my buildings insurance sum insured?
You should review your sum insured at least once a year, ideally at policy renewal. South African construction costs have risen 8–12% per year in recent years, meaning a policy not updated for 5 years could be 40–60% underinsured. Get a professional building reinstatement valuation from a registered quantity surveyor every 3–5 years for accuracy. Many insurers offer automatic indexation — check if yours does.
What can I do if my insurance claim is rejected or underpaid?
If you disagree with your insurer's decision, first ask for written reasons. Then escalate to the insurer's internal complaints department. If unresolved, lodge a complaint with the OSTI (Ombudsman for Short-Term Insurance) at 0860 726 890 or www.osti.co.za. OSTI is free for policyholders and can compel insurers to pay legitimate claims. Alternatively, the FSCA (Financial Sector Conduct Authority) handles regulatory complaints.
Does load shedding damage count as an insurable event in South Africa?
Power surge damage from load shedding (when power is restored) is typically covered under "electrical surge" or "power surge" in your policy — subject to your excess and sum insured. Pure load shedding damage where appliances fail from cycling on/off may be covered or excluded depending on your policy wording. Check your policy carefully and ensure you have surge protection listed. Some insurers exclude load-shedding-related damage explicitly.