Being locked out of home ownership shouldn't mean unprotected

Johannesburg - As more young South Africans delay homeownership due to affordability pressures, renting is becoming a long-term reality rather than a temporary living situation. The latest FNB General Household Survey (GHS) found that the proportion of households renting increased from 21.9% in 2019 to 25.8% in 2025, while mortgage-linked homeownership declined from 7.5% to 6.3% and fully paid ownership fell from 57% to 53%. 

While much of the public conversation focuses on the barriers to buying a home, Sherry Sibeko, Executive Head for Personal Lines at Miway, says there is less awareness of the financial and insurance risks that renters face.

"As more South Africans spend longer periods renting, it's important that insurance decisions evolve. Many renters assume they are adequately covered because the property itself is insured, but there is often a misunderstanding about what that cover actually includes and where a tenant's responsibility begins."

One of the most common misconceptions, according to Sibeko, is that a landlord's insurance policy automatically protects everything inside the home, when in reality, building insurance and contents insurance serve very different purposes.

"Building insurance typically covers the physical structure of a property, including elements such as walls, roofs, fitted fixtures and permanent installations. This type of cover is generally the responsibility of the property owner," she explains. "Contents insurance, on the other hand, protects the possessions inside the home. Furniture, clothing, appliances, electronics, sporting equipment and other personal belongings usually fall within this category. These items belong to the tenant and are therefore the tenant's responsibility to insure."

The distinction becomes particularly important when unexpected events occur. A break-in, electrical surge, fire, burst geyser or severe weather event may damage or destroy personal belongings, even if the building itself remains insured. Without contents cover, replacing those items can place significant strain on already stretched household budgets.

"Many renters have invested substantially in the contents of their homes, even if they do not own the property itself," notes Sibeko. "When you consider the combined value of household appliances, furniture, clothing and personal electronics, the financial impact of a loss event can be far greater than people realise."

For South Africans working towards future homeownership goals, she says protecting existing assets should form part of broader financial planning. "Recovering from an uninsured loss can undo years of careful saving and create additional debt at a time when affordability is already under pressure."

While the path to homeownership may be taking longer for many South Africans, Sibeko concludes that renting does not have to mean going without protection. "Whether you own the building you live in or rent it, you still have valuable assets that need protection and insurance plays an important role in this. Ensuring appropriate cover is in place can help renters build financial resilience today while continuing to work towards the homes they hope to own tomorrow."