Home Insurance in 2026

Even though South Africa’s property landscape enters 2026 at a time of hopeful economic recovery, homeowners still face high household financial pressure and fast-paced technological change. For many, this year will be defined by a renewed focus on protecting their greatest assets – their homes. This opens an important conversation about the role of AI and digital tools in managing insurance risk and policyholder experiences, helping South Africans safeguard their homeownership dreams, and ultimately, their household wealth, as homes often represent the largest share of household assets.

 Interest rates are expected to improve marginally in 2026, with the South African Reserve Bank predicted to ease the repo rate. However, both bondholders and cash buyers will continue to navigate tight monthly budgets amid higher living costs. Many remain uninsured or underinsured, which increases financial vulnerability.

 ASISA continues to highlight a persistent life insurance gap in South Africa, with many households lacking adequate cover to protect their home dreams and families. The national combined life insurance gap for death, disability, and critical illness events alone has been estimated at R50.4t. This begs the question, how can we ensure we are protecting our assets and families in 2026?

The silent risk: Why 1 in 3 homes are underinsured

With one in three homes underinsured in South Africa, underinsurance could be considered one of the biggest risks of 2026. Building inflation has outpaced many homeowners’ building insurance, leaving their homes insured for less than what it would cost to rebuild or repair them after damage.

 Part of the problem is low engagement. Many homeowners don’t review their cover regularly or read their policy terms and conditions. Insurance often feels like a grudge purchase, that is, until a crisis strikes.

 Extreme weather conditions over the past few months and recent weeks, including hailstorms, flooding, and wildfires across many parts of the country, further underscores the vulnerability of homeowners. These growing risks continue to reveal the true value of being adequately covered.

How AI is changing home insurance in 2026

A big trend for 2026 is the rise of technology-driven insurance solutions. From AI-led risk assessments to AI-driven policy management and client service, tech is making insurance more transparent, personalised, affordable, and accessible.

 “Smart digital tools that provide property insights can help homeowners protect and grow the value of their homes”, says Regard Budler, CEO at BetterSure Financial Consultants.

 “AI can also assist in faster and smoother claims processes and is making it possible for South Africans to understand their risks thoroughly. In a tough economic climate, empowering households with the right tools is one of the most meaningful ways we can help protect household wealth”, continues Budler.

 Importantly for South African homeowners, technology is also making insurance more accessible. Instant quotes and tech-based policy management allow clients to stay informed and engaged without the friction of complicated paperwork.

Why estate planning is the missing link in home protection

Another overlooked aspect of home protection is estate planning. An estimated 70% of South Africans don’t have a valid will or testament. For homeowners, their home is often their largest investment, and without a will, it can cause serious complications for their loved ones. Property transfers can be delayed, family members can face legal battles, and the overall estate can lose money due to administrative costs incurred by delays.

 “Most consumers think that getting a valid will is a long and tedious process. However, new technology is simplifying this process, making estate planning more accessible and less intimidating”, says Budler.

 In 2026, we can expect a push on linking property ownership with estate planning. Homebuyers should be encouraged to view their will as part of their home protection plan to ensure their homes remain a long-term asset for future generations.

Affordability matters: homeowners need smart, simple tools

As homeowners continue to look for ways to save money, affordable insurance solutions that offer real value and cost-saving opportunities will become increasingly important.

 Another emerging trend is home wellness: proactively maintaining your property to prevent or minimise damage. Simple digital tools that help homeowners manage their property risks can help reduce overall claims and protect clients from premium increases linked to claims experience while also unlocking savings on premiums.

The 2026 outlook: smarter cover, safer homes

Technology and AI will play a crucial role in household wealth protection by making insurance and financial planning easier to understand, easier to access, and better aligned with real-world risks.

A strong focus on education, affordability, accessibility, and digital innovation will help South Africans protect their homes, their families, and their long-term wealth. 2026 looks to be the year of taking control, understanding risks, adopting the right technology for the benefit of homeowners, and building smarter financial protection.

Issued by Alecia Stander