The definition of a building

[Updated: 11 August 2025]

When it comes to insuring a building, definitions do matter, and they are not always the same. Interestingly, the term “building” can mean different things depending on the context, which is why extra care should be taken when reviewing insurance policies.

Common dictionary definitions

Looking at a few online sources, “building” is often described as:

• A relatively permanent enclosed construction on a plot of land, having a roof and usually windows, and often more than one level, used for a wide variety of activities such as living, entertaining, or manufacturing.
• Anything built or constructed.
• The act, business, or practice of constructing houses, office buildings, etc.

Legal definition – Sectional Title Schemes Management Act

According to the Sectional Title Schemes Management Act 8 of 2011 (STSMA):

“Building” means a structure of a permanent nature erected or to be erected and which is shown on a sectional plan as part of a scheme.

Insurance policy definition

A typical building insurance policy may describe “buildings” in broader, more detailed terms. For example:

“Buildings: Shall be deemed to include outbuildings and landlord’s fixtures and fittings therein and thereon, including fitted carpets and lifts with all associated equipment, transformers, motors, boilers, air conditioning, standby generators and walls (except dam walls), gates, posts, fences (excluding hedges) and sporting/recreational structures including but not limited to swimming pools, tennis courts (including floodlights), sauna/spa baths/jacuzzis and water pumps, pool machinery, borehole motors and brick, tar, concrete or paved roads, driveways, parking areas, paths or patios, all the property of the insured and situated as stated in the schedule. Unless otherwise stated in the schedule, the buildings and outbuildings shall be constructed of brick, stone, concrete or metal on metal framework and roofed with slate, tiles, metal, concrete or asbestos.”

This definition tells us quite a bit. It includes all fixed improvements to the property beyond the land itself. If something is part of the building, for example, fitted carpets, built-in cupboards, or light fittings, it’s usually covered. Movable contents, however, are excluded and should be insured under an owner’s personal or household policy. Land itself is also excluded and usually remains even if the buildings are destroyed.

Key points to watch for

Correct property description

The clause “…and situated as stated in the schedule” means the risk address must be correctly defined. If buildings extend over multiple plots (erven), ensure all are included in the policy or specified.

Special structures

Wooden structures and thatch roofs are often excluded unless specifically noted in the policy. Trustees should make sure such risks are disclosed to the insurer and covered, even if this means paying an additional premium.

Thatch lapas

Many insurers apply a higher premium if a thatch lapa is larger than 20 sqm and closer than 4 m to the main building. Owners with lapas should consult their broker or insurer for specific underwriting requirements.

Legal vs. insurance definitions

The STSMA definition is what applies in the prescribed management rules, so care must be taken with thatch, retaining walls, and wooden structures — especially if they are not shown on the sectional plan.

Trend toward “all risk” policies

Some leading underwriting managers now offer “All Risk” policy wordings. While the broader building definition remains, these policies tend to specify exclusions more clearly, which can affect how the term “building” is interpreted.

The bottom line

Don’t assume everything on your property is automatically covered. Always read the policy definition carefully and compare it to your actual building environment.

For more details, refer to The Sectional Title Insurance Guide, which can be downloaded via the blue link button below.