Thatch Insurance in South Africa – Understanding the Market

South Africa’s thatched-roof homes, lodges, and estates are a distinctive part of the country’s landscape, offering aesthetic charm and natural insulation benefits. However, securing thatch insurance has become increasingly difficult due to changes in insurer risk appetites.

Many homeowners and property managers are facing policy cancellations, higher premiums, and stricter underwriting requirements. The challenges stem from market shifts, including global reinsurance constraints and an increase in claims from thatch-related fire damage.

In this article, you will learn:

• Why thatched roof insurance has become more difficult to obtain.
• How the South African insurance market is responding to these challenges.
• Steps homeowners and lodge operators can take to improve insurability.
• How partnering with Specialised Broker Services (such as SBS) can help you navigate the unique challenges faced by thatch building owners, ensuring you secure the right insurance cover with confidence and peace of mind.

Let’s unpack some of the reasons behind the tightening market and explore solutions for securing thatched property insurance in South Africa

Why Is Thatched Roof Insurance Becoming More Difficult to Secure?

Insurance companies provide coverage by assessing risk and collecting premiums. However, they also rely on reinsurers—global companies that help distribute the financial burden of claims. Some of the largest reinsurers, such as Lloyds and Swiss Re, play a major role in deciding whether insurers in South Africa can continue offering policies for high-risk properties like thatched homes, lodges, and estates.

Due to a rise in claims worldwide, reinsurers have tightened their capacity for fire-prone properties, including those with thatched roofs. This has led local insurers to reassess their risk exposure, reducing the availability of thatched roof property insurance in certain regions.

The Global Impact on South African Thatched Roof Insurance

In 2024 alone, Swiss Re reported over $135 billion in insured natural catastrophe losses, marking the fifth consecutive year of losses exceeding $100 billion. Specific disasters such as:

• Hurricanes Helene and Milton contributed $50 billion in damages.
• Global flooding caused $12 billion in losses.
• Severe consecutive storms made 2024 the second costliest year on record, with losses reaching $51 billion.
• California wildfires are estimated to have cost over $200 billion.

These catastrophic losses have forced reinsurers to scrutinize their risk portfolios and cut back on high-risk properties, including thatch insurance in South Africa. The result? Higher premiums, stricter conditions, and policy cancellations for thatched property owners.  These global challenges directly affect local markets, leading to key shifts in the South African insurance landscape.

Market Trends Impacting Thatch Insurance in South Africa

The increasing difficulty in securing thatched roof insurance in South Africa is closely tied to the global reinsurance trends of rising catastrophe-related losses worldwide, forcing insurers to reassess their exposure. At the same time, South Africa has seen a surge in large thatch fire claims between 2023 and 2024, prompting insurers to withdraw from the market or impose stricter conditions on policyholders. As a result, homeowners and lodge operators are increasingly experiencing policy cancellations, premium hikes, and reduced coverage availability.

Several key market factors are now shaping the availability and cost of insurance for thatch homes in South Africa. One of the most pressing issues is the increase in fire-related claims between 2023 and 2024, which has led to large-scale financial losses for insurers. As a result, some companies have withdrawn from the market entirely, reducing the number of options available for homeowners.

Additionally, some insurers have begun introducing stricter underwriting requirements, meaning property owners may be asked to implement enhanced fire prevention measures (such as fire retardants, sprinkler systems, or lightning conductors) before qualifying for coverage. While these conditions aren’t applied by all insurers, many property owners are still seeing sharp premium increases as the pool of providers willing to underwrite these risks continues to shrink.

Beyond rising premiums and reduced coverage, another critical factor affecting thatched property insurance is the saturation of high-risk areas. In some regions, particularly those with a dense concentration of thatched homes, lodges, or estates, insurers have completely withdrawn their coverage due to the heightened financial risk of insuring too many properties in one location. When insurers exceed their acceptable risk threshold for a specific area, they often refuse to take on new policies and may even discontinue existing ones, leaving homeowners with limited or no coverage options.

This saturation effect is being felt most acutely in well-known thatch-heavy regions, where property owners are now struggling to secure new policies or renew existing ones. Understanding which areas are impacted and how insurers assess these risks is crucial for homeowners and lodge operators looking for viable insurance solutions.

What Is a “Saturated” Area?

A saturated area refers to a region where a high concentration of thatched roof properties makes insurers reluctant to take on additional risk. When too many insured properties are located within a single area, the potential financial exposure for insurers increases, leading them to either restrict new policies, impose stricter underwriting conditions, or withdraw from the market entirely.

High-Risk Saturated Areas in South Africa

In South Africa, several regions with a high density of thatched properties have become particularly challenging for homeowners and lodge operators seeking insurance. Hoedspruit, for example, has experienced significant fire-related incidents, such as the Radisson Hotel fire, caused by a lightning strike, which demonstrated the heightened risks of thatched structures. Similarly, Magaliesberg, known for its picturesque thatched homes and lodges, requires homeowners to adopt stringent fire prevention measures to maintain insurability.

Some of the most affected areas include:

• Densely Thatched Residential Communities – Homeowners in these developments are finding it increasingly difficult to secure coverage, as past fire-related claims have made insurers more cautious.
  
• High-Risk Residential Estates – In many regions, properties with significant thatch coverage are experiencing policy non-renewals or steep premium increases due to the elevated risk profile.
  
• Lodges and Safari Resorts with Extensive Thatch Structures – These properties, particularly in eco-tourism and wildlife areas, face heightened fire risks from lightning strikes and open flames, often resulting in coverage withdrawals or costly fire protection requirements.

How This Affects Homeowners and Lodge Operators

Property owners in these saturated areas are facing significant insurance challenges, including:

• Policy Non-Renewals – Many homeowners are receiving cancellation notices, requiring them to seek alternative coverage quickly.
  
• Higher Premiums – Even where insurance remains available, premiums have increased significantly, reflecting the high-risk exposure in these areas.
  
• Stricter Fire Safety Requirements – Homeowners and lodge operators must now implement extensive fire prevention measures, such as fire retardants, sprinkler systems, and lightning conductors, to qualify for coverage.

With insurers reducing their presence in these saturated areas, homeowners and lodge operators must take a proactive approach to securing thatched property insurance. This means working with specialist insurance brokers like SBS, who have exclusive access to insurers still willing to underwrite thatch risks and can guide property owners through risk mitigation strategies to improve insurability.

What You Can Do to Improve Your Insurability

As insurers become more selective, homeowners and lodge operators must take proactive measures to improve their chances of securing thatched roof insurance. Fireproofing is one of the most effective ways to reduce risk, involving the installation of fire retardants, lightning conductors, and fire breaks to minimise potential damage. Equally important is regular maintenance—keeping detailed records of inspections, re-thatching, and repairs assures insurers that the property is well maintained and less vulnerable to fire hazards. Additionally, enhancing fire safety measures by installing sprinkler systems, accessible fire extinguishers, and emergency exits can further increase insurability.

By implementing these strategies, property owners can strengthen their position when applying for coverage for thatched roofs and improve their ability to secure competitive insurance rates.

How SBS Brokers Can Help Secure Thatched Roof Insurance

Despite these industry shifts, Specialist Broker Services (SBS) continues to provide tailored thatched roof insurance solutions. Through strong relationships with specialised insurers, SBS helps property owners navigate market challenges and secure competitive coverage.

SBS Specialises In:

• Finding insurers still willing to underwrite thatched property insurance.
• Helping clients navigate policy terminations and secure alternative solutions.
• Advising on risk mitigation to improve insurability.
• Providing coverage options for individual homes, lodges, and estates.

Why Work with SBS for Your Thatch Insurance Needs?

• Access to Exclusive Insurers: SBS works with niche insurers who still cover thatched roofs, even in high-risk regions.
• Tailored Risk Solutions: Each policy is customised based on property type, location, and fire prevention measures.
• Expert Guidance: If your insurer cancels your policy, SBS will help you find a replacement.
• Comprehensive Coverage: Policies can include fire, storm damage, liability, and theft protection.

Secure the Best Thatched Roof Insurance with Confidence

If you own a thatched-roof home, lodge, or estate and are finding it challenging to secure or maintain reliable thatched property insurance coverage, SBS Specialised Insurance Brokers is here to help. With deep expertise in the thatch insurance market and a proven track record of crafting tailored short-term insurance solutions, SBS makes navigating complex market conditions simpler and more reassuring.

Our team understands the unique risks associated with thatch properties and works closely with you to find the right policy, negotiate competitive premiums, and ensure you have the peace of mind that comes with knowing your property is fully protected.

Don’t wait until it’s too late — contact SBS today for expert guidance and a customised thatch insurance plan designed to keep your home, lodge, or estate secure now and in the future.