MAIN IMAGE: Ryno de Kock – head of distribution at PSG Insure
PSG Insure
South Africa’s residential rental market is booming, with national rental growth reaching 5.6% in the first quarter of 2025 – the strongest quarterly increase in nearly eight years – according to the PayProp Rental Index.
This increase in demand has led to a rise in properties being rented, let, or converted into businesses, such as Airbnb listings or Bed-and-Breakfasts. But what many landlords, tenants, B&B owners or Airbnb hosts don’t realise is how the level of furnishing in a property can significantly influence insurance needs. This is according to Ryno de Kock, head of distribution at PSG Insure.
Unfurnished properties
Unfurnished rentals typically exclude movable items, such as furniture and appliances, leaving tenants to bring their own. For landlords, this means securing building insurance that covers structural risks, such as plumbing blowouts, fire damage, or storm-related incidents. A public liability extension is also essential to protect against third-party claims, such as those involving injuries to tenants or visitors resulting from negligence on the premises.
Property owners’ liability is also essential to protect against third-party claims. “If the tenant or visitor’s property gets damaged due to an event which is related to the building, for example – if a landlord does not maintain the property appropriately, and the wind blows off a roof tile and damages a vehicle, the property owner must have the necessary liability cover in place to cater for these damages,” de Kock says.
For tenants, a major misconception is that the landlord’s policy will cover their possessions. It won’t. This means renters need their own contents insurance to protect items like electronics and kitchen appliances. For example, if a geyser bursts and damages your TV, you can only claim if you’re properly insured. The landlord’s policy will likely only cover structural damage.
Semi-furnished properties
Semi-furnished homes may include essentials such as a fridge, washing machine, or a dining room set. In these cases, landlords either take out contents insurance in addition to the standard building cover or include the contents as part of the rental agreement. A comprehensive inventory list is crucial for these items. Each should be documented with its replacement value.
Most property owners will include these items as part of the rental agreement, where each item should be documented with its replacement value. “This will normally shift the responsibility of insuring these items onto the tenant, who can be held liable for these items when the rental agreement ends.”
Tenants, meanwhile, remain responsible for covering their belongings. If you plan to bring in a high-end speaker system or personal electronics, be sure to specify them in your policy and consider adding these items to “all-risk” coverage if they accompany you off the property.
Furnished properties
Fully furnished properties – whether rented long-term or listed on Airbnb – carry the greatest exposure for landlords. Here, de Kock advises that a comprehensive content policy is non-negotiable. “From bed linen to TVs, everything should be insured at current replacement value. If you’re hosting on Airbnb, ensure your policy covers multiple addresses if you have multiple properties or locations. This will include your home and the rental property – if applicable,” he says. It’s also important to keep an updated inventory of all contents that are included in the insurance policy with the replacement value per item.
Short-term lets also introduce a higher chance of theft and accidental damage. As such, Airbnb hosts often face exclusions for theft without forced entry or damage caused by guests. Additionally, according to standard Airbnb insurance rules, coverage may only apply if you reside permanently on the property and limit the number of guests to under six adults.
Even when the property is fully furnished, tenants should still insure any valuables they bring with them. A tenant’s computer, camera, or designer coffee machine won’t be included in the landlord’s policy and may require separate listing under contents or all-risk cover.
It’s also important to understand that a standard domestic insurance policy typically won’t cover liability arising from paying guests. If you’re listing your property on Airbnb or operating a guesthouse, you will need commercial liability insurance specifically designed to cover short-term or hospitality-related stays. de Kock suggests that this becomes especially critical when hosting international guests, who may claim damages in foreign currency. “If you’re renting out the property as an Airbnb, the property owner must provide the necessary disclaimer to guests that the B&B or Airbnb cannot take responsibility for their items, and the guest should take extra precautions when leaving them unattended.”
If meals are provided as part of a guest’s stay, product liability cover is essential to protect the owner against risks such as food poisoning. Furthermore, liability insurance can extend to cover the actions of staff or employees, for example, if a waiter trips on a rug and spills hot coffee on a guest, the owner could be held legally liable. These scenarios may seem rare, but without the appropriate cover, they could result in financially devastating legal and medical claims.
As de Kock concludes, “With the right policies and expert advice, property rentals – furnished or not – can be an extremely lucrative venture in today’s market. The key, however, is understanding the specific risks you face and tailoring your cover accordingly. An experienced adviser can help you navigate exclusions, avoid underinsurance, and ensure that your policy truly fits your property setup.
