What you should know about weather-related incidents and insurance

Recent severe weather conditions in various parts of the country which left one person dead and caused widespread flooding across several areas have highlighted the importance of reviewing insurance cover regularly.

According to Naked Insurance co-founder Ernest North, insurance is not a “one-size-fits-all” solution.

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North said for many younger adults, the most important short-term insurance needs are:

• Car insurance: A car is usually one of the most expensive assets a young adult owns. Comprehensive car insurance covers your own car for accidental damage, theft or write-off, and usually also covers damage you cause to someone else’s property,
• Third party-only cover is cheaper, but it will not cover damage to your own car. It does, however, protect you against legal liability for damage your vehicle causes to other people’s property,
• Home contents insurance: This covers all the belongings inside your home such as furniture, appliances, clothing and electronics against risks like theft, fire or water damage.
• Single item cover: This is useful if you only want to protect one or two significant items, such as your phone, laptop, camera or bicycle.
• Building insurance: If you own your home, you also need to insure the building itself and its fixtures.

North said consumers should ensure that they keep their property well-maintained, and act quickly when damage happens.

Take photos and videos, keep receipts and repair quotes, and submit your claim as soon as it is safe to do so. The sooner your insurer has the right information

—  Naked Insurance co-founder Ernest North

“Take photos and videos, keep receipts and repair quotes, and submit your claim as soon as it is safe to do so. The sooner your insurer has the right information, the faster they can start helping.”

He said a simple way to think about insurance was that losing or damaging something would put you under financial pressure, it is worth considering whether it should be insured.

“In most cases, people do not need a separate ‘natural disaster’ policy for storm, hail, wind or flood damage.

“These risks are usually included in comprehensive car, buildings and home contents policies, but the exact cover depends on your policy,” North said.

He said the most important thing was for people to check what they were insured for before something happens.

One should also ensure that their policy includes weather-related risks such as fire, storms, hail, wind and flood damage, and that your car, building, solar panels and contents are insured for realistic replacement values.

He said some of the patterns they were seeing, which showed people were underestimating their exposure until it is too late, was when clients realise after a loss that they did not have the right cover, or enough cover.

“They [clients] may have insured their car only for third-party liability and then discover that their own weather-related damage is not covered, or they may assume their landlord’s insurance covers their belongings, when it usually only covers the building and they needed their own home content insurance or single item cover,” North said.

He added that another common issue was maintenance.

This would happen during rainy periods when claims of storm damage and maintenance problems overlap.

“For example, leaks caused by blocked gutters, cracked tiles or roof issues that have built up over time. Ultimately, insurance is there to help when things go wrong unexpectedly, but it relies on policyholders doing their part to take reasonable care of their property.

“Keeping your property in good condition not only helps you avoid the stress and cost of damage, but it also ensures that your claim will be a smooth experience when you need it.”

Sowetan