Insurance Glossary

Sum insured

Last reviewed 25 July 2026 · by the Savvy Insurance editorial team

What is sum insured?

The sum insured is the value you insure an item or property for, and the most the insurer will pay for a total loss. Setting it too low leads to under-insurance and reduced payouts.

Example

If your home's buildings sum insured is R2 million, that's the most the insurer will pay to rebuild it.

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