ARE SOUTH AFRICANS ADEQUATELY COVERED FOR STORM DAMAGE?

Thursday, November 2, 2017


The violent storms that have swept South Africa over the past week have left many people with one question on their minds: “I wonder if my insurance will cover the damage?”

With streets and buildings flooded, the damage to cars, homes and businesses in Gauteng and KwaZulu-Natal is anticipated to spiral into millions of rands. South Africans will be turning to their insurers with claims, hoping that they will be met. According to Vera Nagtegaal, the executive head of Hippo.co.za, this outcome shouldn’t be left to guesswork.

“South Africans should examine and understand their insurance policies, and ensure that they are covered for all possible eventualities,” she says. “Being under-insured opens people up to risks – and so when events take place such as extreme weather, more bad news might be on the way.”

Why an insurer might reject your claim

There are certain factors that an insurer will consider when you submit a storm-damages claim. Nagtegaal says that these include whether the damage of the property or vehicle directly relates to the bad weather, and what the condition of the property or vehicle was in the first place.

A property claim might be rejected if the property didn’t have adequate drainage, retaining walls were not thick enough or foundations were poor quality. “For these reasons, you should always have any property renovations done with the help of an architect in consultation with an engineer, to make sure that the building work is structurally sound. Most insurers will also work with assessors to help determine any risks before cover is put in place,” Nagtegaal says.

A vehicle claim might be rejected if the policy doesn’t cover flood damage, or if water damage to the engine was caused by negligent driving.

“Storms like these are a good reminder to us all to check whether our insurance policies are up to date and that they cover us for all eventualities,” says Nagtegaal. “And, if you are buying a new policy, don’t always go for the cheapest option – make sure that the saving isn’t coming at the expense of a much-needed benefit.”

Make a date to check your policy

Nagtegaal says that policyholders should read through their policy at least once a year, to make sure that it is aligned with the current value and status of the insured assets. “You may not remember that you have made a change to your home that your insurer should know about, and reading your policy could jog your memory. In some cases, a change like installing a security system could actually result in a reduced premium.”

You can do this policy update with your insurer or broker over the phone as they might help you by asking the relevant questions.

Finally, Nagtegaal says that it is vital that your insurance covers the true value of your property and car. “If you are under-insured – which means that you are insured for a value

that is lower than the total value of your possessions – then your insurance may only pay out a representative portion of the costs of the damage.”

For example, if you stated that your household contents were worth R100 000, but on inspection, the assessor found that they had been worth R200 000, you could only receive 50% of the damages claim, irrespective of what the total claim was.

“Don’t under-estimate costs to save on premiums. You could be at risk of a reduced pay-out when you need it most,” she says. “If you are uncertain about any of this, speak to your insurer right away to get clarity on your cover, and make adjustments where necessary.”

ABOUT HIPPO.CO.ZA

Established in 2007, Hippo.co.za is South Africa’s leading comparison website that helps consumers save money by comparing a range of South African providers across financial products such as Car Insurance, Household Insurance, Life Insurance, Medical Aid and more. Hippo.co.za is free to use and saves consumers the time and hassle of shopping around for the best deal since the Hippo.co.za website instantly retrieves real-time quotes from the different providers using the latest Internet technology. You could save hundreds of Rands per month* on your Car Insurance alone by using Hippo.co.za to compare before you buy or switch to a new provider.

Hippo.co.za makes money by simply charging its partners a fee when a customer chooses to find out more about their products. The results consumers see, and the order in which they are presented, are in no way influenced by the fee Hippo.co.za charges its partners or any other factors other than the price of the product being compared. 

For more information, visit us on www.hippo.co.za, connect with Hippo.co.za on LinkedIn, http://www.linkedin.com/company/hippo-comparative-services-pty-ltd/, like us on Facebook, www.facebook.com/HippoSA, and follow us on Twitter, @Hippo_co_za and YouTube, http://www.youtube.com/user/hippocompare.

 Hippo Comparative Services (Pty) Ltd is an authorised financial services provider (FSP number: 16357).

Terms and Conditions apply.

*Based on 2017 independent market research conducted by Kaufman Levin Associates.



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