As the year draws to a close, it’s a time to look back on the challenges and successes we’ve experienced together. In this newsletter, you’ll find insights and lessons from the past year that we hope will be beneficial as we move into 2024.
We want to express our heartfelt thanks for your invaluable support over the past year. Your trust and partnership mean a lot to us.
Power Surge
The insurance industry has experienced a steep escalation in power surge claims in recent years, and this has prompted insurance companies to take corrective measures to manage this risk. Power surges can cause significant damage to electrical appliances and systems in homes and businesses, leading to insurance claims for the resulting losses.
To address this issue, insurance companies have implemented various changes to their policies. These changes can include adjustments to excesses (deductibles), limitations on coverage, and modifications to terms and conditions related to power surge protection. The specific changes can vary from one insurance company to another, so it’s essential for policyholders to carefully review their insurance policies to understand the cover offered.
One such measure that is commonly imposed by some insurers, is the installation of surge arrestors at the distribution board or other protective measures to minimize the risk of power surges. This is seen as an effective way to mitigate potential damage caused by power surges.
Another notable change is that some insurance companies are no longer providing free cover for power surges as part of policy renewals. Instead, policyholders may need to purchase this cover separately or as an optional add-on. It’s essential for policyholders to be aware of the possible changes that are applicable to them to avoid any surprises when it comes to making a claim.
The terms and conditions amongst different insurance companies can be confusing to understand, so we invite our policyholders to contact our underwriting departments to seek clarification on their cover regarding power surges. This will provide a clear understanding and avoid potential complications or repudiations in the event of a power surge-related loss.
Vehicle tracking
Insurance companies have seen an increase in claims for vehicle crime in both commercial and personal lines, confirming a significant jump in high-value vehicle hijackings and thefts. From their investigations, it appears that syndicates have found ways to seamlessly access vehicles with keyless entry systems. The theft rate is particularly high in Gauteng and Kwazulu-Natal, with areas closer to border crossings being particularly at risk. Although it seems like the traditional tracking devices are becoming less effective. they still assist in mitigating the risk as they do provide an advantage in the early stages of theft/hi-jacking. Many insurance companies have therefore made the installation of a tracker mandatory.
The following vehicles are regarded as high risk:
- Ford Ranger
- Toyota Hilux
- Toyota Fortuner
- Toyota Land Cruiser
- Toyota Prado
- Toyota Etios
- Nissan NP200
If you are thinking of purchasing one of the above vehicles or already own one, please make sure you are familiar with the tracking requirements imposed by your insurance company.
Solar Systems
On-going load shedding has resulted in more solar systems being installed by both private homes and businesses. However, insurance companies typically have specific requirements that need to be met to ensure cover and address potential risks associated with solar panel installations. These requirements include the following:
- Professional Installation: Insurance companies require that solar systems be professionally installed by certified and qualified installers. This helps ensure the system’s safe and effective operation.
- Certificate of Compliance (COC): Solar installations must comply with all relevant local building codes and regulations. Proof of necessary permits and inspections are required.
- System Specifications: Insurers may need detailed information about the solar system, including its capacity, type of panels, and inverter specifications. This helps assess the value and potential risks associated with the system.
- Maintenance and Inspection: Regular maintenance and inspections of the solar system is required to keep it in good working condition. This can include periodic checks of the panels, wiring, and electrical components. A record of the maintenance checks should be kept.
- System Location: The location of the solar panels is important. They should be securely mounted and situated to minimize potential risks, such as shading or structural damage.
- Notification of Changes: Policyholders should inform their insurance company of any significant changes or upgrades to the solar system to ensure continued coverage.
- Roof Condition: The condition of the roof, where the solar panels are installed, is also important. Insurers may require the roof to be in good repair to minimize risks associated with leaks or structural issues.
Theft of Exterior fixtures and fittings
The theft of exterior fixtures and fittings, such as outdoor lighting, air conditioning split units, copper wiring, and other valuable items has become more prevalent, possibly due to economic hardships driving thieves to desperate measures. To address this risk and navigate potential insurance-related concerns, insurers have made changes to their cover.
- Policy Review: Begin by thoroughly reviewing your insurance policy to understand the specific terms and conditions regarding theft. Insurance policies can vary in their cover for theft of exterior fixtures and fittings.
- Limitations Awareness: Recognize that insurance policies often come with limitations on cover for certain items or types of theft. Be aware of these limitations to ensure that your cover aligns with your needs.
- Security Precautions: To mitigate the risk of theft, it is advisable to take security measures. This could include installing security lighting, fencing, alarms, or surveillance systems to deter potential thieves.
In summary, theft of exterior fixtures and fittings is a risk that property owners should be proactive about, particularly in challenging economic times. By becoming well-informed about your insurance policy, taking security precautions, documenting valuable items, and staying in communication with your insurer, you can effectively address this risk and secure the right cover for your property.
ROADSIDE AND HOME ASSIST NUMBERS
The roadside and the home assist facilities are very useful in case of emergencies, especially if you are involved in a motor accident or have a sudden emergency at your house. While our offices will be open throughout the festive season except for public holidays, please save the relevant numbers together with your policy number in your cellphone. Roadside assistance is a 24-hour service that will ensure that you can have your vehicle safely towed away from the scene and given any first line assistance you need depending on the type of emergency. Roadside assistance will also help with minor problems such as: a flat tyre or battery, keys locked in cars or running out of fuel. For details of all the services offered, please consult your roadside or home assist brochure. Should you require a brochure, please contact us and we will resend it to you.
SECURITY AND ALARM WARRANTY
If you are going away for the holidays or leaving your home unattended for an extended period, this is a good opportunity to check that your home alarm system is fully operational. Please bear in mind that where there is an alarm warranty in place, you are required to activate the alarm whenever you leave the property unoccupied. Batteries are often adversely affected by load shedding, making it essential to regularly check that they are functioning properly.
TRAVEL INSURANCE
If you are planning a holiday overseas why not call us for a travel insurance quote. We will be able to assist you.
In closing we would like to express our heartfelt thanks for your invaluable support over the past year. Your trust and partnership mean a lot to us.
As we approach the new year, we want to extend our warmest wishes to you and your loved ones. May the coming year bring good health, happiness, and even more opportunities your way. We’re excited about what the future holds and feel privileged to continue being part of your journey.
We wish you and your family a joyful holiday season and a New Year filled with brightness and prosperity.