South Africans are counting the cost of extreme weather after devastating storms, floods, winds, and even snowfall battered several provinces in recent weeks.
The Western Cape, Eastern Cape, and other parts of the country have experienced widespread flooding, damaged homes, power outages, road closures, and displacement of families, leading to the declaration of a national disaster.
For most South Africans, the emotional toll of weather destruction is worsened by the financial shock that follows.
“Our 2025 Money & Me survey revealed that only 16% of South Africans can cover a R10,000 emergency,” says Sarah Nicholson, head of customer experience at JustMoney. “Alarmingly, 25% would need a loan in such a situation.”
“Damage to homes, vehicles, and belongings can leave households scrambling for funds, while temporary accommodation, lengthy repair processes, and loss of income create further strain.”
Being prepared before disaster strikes, and knowing how to proceed if damage occurs, can significantly reduce the practical and financial impacts, says Nicholson.
JustMoney makes the following recommendations:
- Review insurance cover.Check that your home, contents, and vehicle insurance policies are up to date, and that insured amounts reflect replacement costs. If you have made improvements to your home or bought expensive appliances, update your insurance.
- Understand your policy.Read the fine print carefully and ask questions. Understand excess payments, exclusions, and claim procedures.
- Create a home inventory.Photograph valuable possessions and keep copies of purchase receipts, serial numbers, and warranties. Store these digitally in cloud storage or email them to yourself. This documentation can speed up insurance claims and help prove ownership of lost items.
- Protect important documents.Identity documents, passports, insurance policies, wills, medical records, and banking information should be stored in waterproof packaging and digitally backed up.
- Build an emergency fund.Extreme weather events can lead to unexpected expenses that insurance may not immediately cover. An emergency fund can help pay for temporary accommodation, food, transport, and urgent repairs while you wait for claims to be processed. Financial advisers generally recommend saving enough to cover at least three months’ essential expenses.
- Reduce property risks.Clear gutters and stormwater drains, trim tree branches, secure loose outdoor items, and repair roof leaks before heavy rains are due. Insurers may reject or reduce claims if damage resulted from long-term neglect or poor maintenance rather than the weather itself.
- Prepare for power disruptions.Load shedding has forced many South Africans to put backup plans in place. Keep power banks charged and emergency lighting accessible.
- Develop an evacuation plan. Plan transport, emergency supplies, medication, and pet arrangements if you live in a flood-prone area.
- Prioritise safety.Do not enter flooded or damaged buildings until authorities confirm they are safe. Loose cables, unstable walls, broken roofs, and contaminated water pose dangers.
- Document damage immediately. Take photographs and videos of damage for insurance claims before starting clean-up or repairs.
- Contact your insurer early.Many insurers experience surges in claims after widespread disasters. Check what documentation is required and whether emergency repairs may proceed before assessment. Keep records of every interaction, including claim reference numbers and emails.
- Prevent further damage.Most insurance policies require policyholders to take reasonable steps to minimise additional losses, for example, covering broken roofs with tarpaulins and removing water-damaged items to prevent mould. Keep receipts for emergency expenses as these may form part of your claim.
- Beware of opportunists.Disasters can attract fraudulent contractors. Do not pay unknown service providers upfront. Obtain written quotes and verify credentials before authorising repairs.
- Seek temporary relief.Severe weather can disrupt income, especially for small business owners, contractors, and seasonal or part-time workers. Contact creditors and financial institutions early if you expect to struggle with debt or contract repayments.
“Environmental experts warn that severe weather is no longer an occasional occurrence, but an increasing risk for households, businesses, and communities,” says Nicholson.
“Understanding where your family is vulnerable, and making small investments or policy changes now, can prevent major financial losses later.”
JustMoney is a South African financial services company providing a range of solutions – from loans to insurance – underpinned by the data and coaching individuals need to make good money choices.
JustMoney believes that money is personal, so its support is too. Customers are more than just a number; they are individuals with unique goals and dreams. From securing a loan or protecting what matters, to finally getting a handle on debt, JustMoney provides a personalised experience powered by insights that fit customers’ lives
