Charmaine Mthombeni, spokesperson at King Price Insurance
With many South Africans showing increasing confidence in the economy, saving money is becoming more of a priority. Whether you’re putting money away for a first home, your children’s education, a long-awaited holiday, retirement, or an emergency, every rand saved represents time, discipline and sacrifice.
Yet, there’s one hidden savings leak that often goes unnoticed until it’s too late: Being uninsured or underinsured. One unexpected incident can undo months, or even years, of careful financial progress, forcing you to pay for losses that could’ve been protected. And, while many South Africans are focused on growing their savings, far fewer are thinking about protecting them.
Even with some money in the bank, it can be difficult to recover financially after an unexpected setback – and everyday risks remain part of daily life. Between January and March 2026, SAPS recorded 1,831 robberies at residential premises, 25,838 cases of malicious damage to property and 1,537 hi-jackings. The festive season alone also saw 1,172 road accidents.
“Many people work incredibly hard to build savings but then leave their ‘nest egg’ exposed,” says Charmaine Mthombeni, spokesperson at King Price Insurance. “But financial wellness isn’t only about growing your money. It’s also about insuring yourself against the unexpected costs that can wipe out your progress overnight.”
These unexpected costs are often far more ordinary than people realise. A cell phone slips out of your pocket and disappears. A leaking or damaged geyser causes extensive damage to your home. A hailstorm dents your car or, worse, it gets stolen. A power surge damages your appliances. After a housebreaking, you could be left replacing electronics, furniture, and other home contents.
Many people assume that savings alone are enough to handle these situations. An emergency fund is certainly one of the healthiest financial habits anyone can develop, but it also has limits. Savings intended for future goals can quickly become emergency repair funds instead, with 45% of respondents to a 2025 survey saying that they dipped into their savings at some point during the year.
Insurance and savings should therefore be viewed as partners rather than alternatives. Savings help you build wealth and prepare for planned expenses, while insurance helps protect your assets from unexpected losses. Together, they create greater financial resilience than either could provide on its own.
Being insured, however, is only part of the picture. Being adequately insured matters just as much. Many consumers underestimate what it would cost to replace their belongings or repair damage to their property. As prices continue to rise, values that seemed accurate a few years ago may no longer reflect today’s replacement costs and, if your cover falls short, you could still find yourself paying significant amounts out of your own pocket when you need to claim.
Regularly reviewing your insurance is therefore an important part of financial planning. It’s worth checking that your insured values remain accurate, that you understand what your policy does and doesn’t cover, and that you would be able to afford the excess if you need to claim.
“As satisfying as it is to watch your savings grow, they’re not meant to become the first source of funding every time life throws you a surprise,” concludes Mthombeni. “The smartest way to stop the hidden savings leak isn’t simply to save more. It’s to make sure the money you’ve worked so hard to build is protected from the unexpected, so that one unlucky day doesn’t erase years of careful planning.”
Ed’s note: Meet Gideon Galloway, Founder and Group CEO of King Price in this episode of EBnet’s Exec Meet & Greet series.
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