Storm claims are a moving target

GEORGE NEWS - Old Mutual Insure has up till Tuesday 30 November received 245 claims of more than R9-million after the devastating flood in George and surrounds last Monday.

"This is a moving target as claims come in," says Lizo Mnguni, the company's spokesperson.

It is in times like this that property owners are reminded of the importance of sufficient insurance. But in addition to ensuring that they have adequate cover, property and vehicle owners should also employ simple maintenance and other preventative measures to minimise or avoid damage, says Mnguni.

Attie Blaauw, head of personal lines underwriting at Santam Insurance, agrees. "It is a general condition in house and household contents insurance contracts that clients must take all reasonable precautions and care to prevent or minimise loss and damage."

Blaauw says claims that Santam received due to last week's storm were for damage caused either by water flooding the property or roof leaks due to the inability to cope with the volume of water because of inadequate design or blocked drainage, and in some cases, damage could have been prevented.

Cover for your house and household contents against damages resulting from natural perils, including flooding, wind, and hail damage, is usually standard on short-term insurance policies, but be aware of the terms and conditions of your policy contract.

Look out for exclusions, terms and conditions

In addition to reasonable precautions to prevent or minimise damage, clients should also understand that they are only covered for the insured amount.

"A loss will only be paid in full if the insured amount is deemed to be adequate. Underinsurance is the biggest reasons for partial payout of claims. As the damaged property needs to be replaced, replacement value forms the basis to determine the correct insurance value. If the replacement value of household contents is R600 000 but the client is insured for only R300 000, then normal practice is that only 50% of the claim will be paid out," says Blaauw.

Most short-term insurance contracts will provide cover for weather-related incidents, which includes flooding. Blaauw advises to always check what you are covered for and what the exclusions, terms and conditions are. "Insurers may impose certain limits or exclusions for flooding for specific properties, but these are exceptional cases."

Cars

According to Blaauw, comprehensive vehicle insurance usually covers loss or damage due to any accidental event, which includes hail, flood and storm damage.

An SMS weather warning system to clients in areas where severe weather conditions such as hailstorms and floods are expected has had a positive effect on the claims received for hail damage.

Minimise or prevent damage

Mnguni says all property and vehicle owners should conduct a thorough risk-management check to help minimise damage.

Check tyres before driving in wet weather. An insurance claim could be rejected if loss or damage was a direct result of poor tyre maintenance.
If you cannot avoid being on the road during predicted storms, check that you have emergency driver assistance in place and have emergency numbers on hand in case of an accident or breakdown - especially as rainy weather increases motorists' chances of accidents.
Know exactly where the shut-off valves of your house are for the main water supply, should water damage occur.
Check your gutters and drainpipes to avoid leaves and other debris from clogging them up.
Unplug all electronic devices, including cellphones, laptops and Wi-Fi routers to prevent serious damage to these devices in the case of lightning.
Have emergency home assistance in place and emergency numbers on speed dial in case of an incident at home, such as flooding, or a tree falling on the roof.

Lizo Mnguni, Old Mutual Insure's spokesperson.