Building insurance is essential to protect a homeowner against a total loss, in the case of a fire, earthquake, severe weather or other disasters. A total loss or write-off is when it will cost more to repair or rebuild a damaged property than what its insured value is.
While you may be able to afford a new geyser or a damaged floor, if a fire destroys your entire home and it must be rebuilt, you do not want to be left homeless. Building insurance should make provision for things like demolition and debris removal, in the case of a fire, and accommodation while your home is repaired. Most structural insurance policies also include some liability insurance should someone accidentally be injured on your property and sue you for damages