How the cover amount is calculated
Total replacement value = sum of all categories Recommended cover = total × (1 + margin %) Cover gap = recommended cover − current sum insured
Underinsurance matters even for small claims: many policies apply an average clause that reduces claims in proportion to how much you are underinsured.
Worked example
A typical family home
The replacement value adds up to R255 000 — R280 500 with a 10% margin — so R200 000 of cover leaves a gap of about R80 000.
You may be underinsured by about R80 500. If your contents are underinsured, insurers usually reduce claims in proportion (the average clause).
Frequently asked questions
How much contents insurance do I need?
Enough to replace everything in your home with new items of similar quality. Most people underestimate — walk room by room, and include clothing, linen and kitchen items.
Replacement value or second-hand value?
Most contents policies pay replacement value (new for old), so that is the figure to insure for. Check your policy wording.
Are my laptop and phone covered away from home?
Usually not under standard contents cover. You need portable possessions (“all risks”) cover for items you take out of the house, and high-value items may need to be listed individually.