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Home-owners along the slopes of Table Mountain in Cape Town have felt the might of runaway wild fires.

While the Western Cape fire department has the situation under control, residents are once again aware of the need to remain vigilant against the increasing risks of fire damage and injury caused by wildfires.

Policyholders are cautioned by highlighting the below examples of when fire related damage would not necessarily be covered by your insurer:

1. Arson

Deliberately setting property on fire is a criminal offence and not covered under your insurance policy. Investigators are appointed by insurers to determine whether the fire has been caused by arson.

2. Fire in a vacant home

Insurers normally define a vacant home as one that has not been occupied for more than 30 consecutive days. You can, however, obtain an unoccupied home insurance endorsement to your existing policy from certain insurers.

He also recommends that home owners especially those that live in urban or peri-urban areas follow these tips on reducing the fire risk of your properties.

It boils down to creating three distinct ‘zones’ of protection around your home:

- The immediate zone around your home

It should consist of well-irrigated, fire resistant, low-growing ground-covers and lawn, together with non-flammable hard-landscaping, such as flagstone walks, brick patios, stone retaining walls, gravel and inorganic mulches, namely an immediate zone that offers low-resistance.

- The garden or medium resistance zone

Choose fire-resistant trees and shrubs, but make sure they do not touch each other or create a fire-ladder effect.

- Perimeter or buffer zone

Plant low-growing, fleshy-leaved ground-covers, hedging plants, large aloes and isolated forest trees that are fire-resistant and re-sprout when damaged by fire.

Finally

“As policy benefits and exclusions vary depending on the exact type of cover and the specific insurance provider, you should always check your policy documents to ensure you are adequately covered. If you feel that an insurer is not providing you with the right service or cover suited to your needs, shop around for a better deal,” says Du Chenne.

Should you need any assistance please feel free to visit our website www.esbrokers.co.za

Article courtesy of Property24
pictures by Pixabay

Parents have so much to think about, especially when it comes to essentials like savings for the family, healthcare or provisions should something bad like a dread disease happen. There are many aspects of modern family living that require thorough planning, and short-term insurance should be key among them. 

Home is where the start is

Your house is the hub for family gatherings and day-to-day living, but is it covered properly for worst case scenario? If you are paying your home off, chances are you have insurance attached. You don’t have to opt for your home loan provider’s insurer, so check your best options. If you have paid off your property, you still need cover against floods, fire, and crime. Your largest asset could be your biggest regret, if you don’t keep cover in place.

When it comes to building cover, the replacement value for your property needs to factor in any demolition and site-clearing costs, in addition to rebuilding the house, with materials at current prices. Don’t just assume that the value of your property as stated on your rates bill is right, as it is typically based on municipality valuation instead of actual replacement cost of your unique home. Get your property valued and have this updated at least every three years to keep up with the proper replacement value.

It’s not on top, it’s inside

Every item in your home has value, from your piano to your winter duvet to your family’s heirloom dresser and the flat screen TV. Each outfit, accessory, and shoe per family member, not to mention every gadget, cooking pot and picture frame. The value, however, is not just sentimental. What matters is how much it would cost you to replace each item, as well as collectively. The collective value of all these goods is how much you need to insure your home contents for. There are online calculators to work this out, and at least annually you should review things (as often new toys, clothes, appliances, or devices are added to or depart from family homes).

You won’t end up with a disproportionate pay out from your insurer if you over-insure, since they will only replace the equivalent of what you have actually lost, but if you are underinsured, your pay out won’t be sufficient to replace what you have lost.

Park problems before they appear

Your family vehicle (perhaps you have more than one) is another key asset to keep covered. In the event of an accident, you may not have access to the vehicle while it is being repaired,  and vehicle hire cover can really help cut the inconvenience and extra costs of getting around. Remember that leisure vehicles like caravans or trailers need to be serviced, properly licensed and need well-maintained tyres to be insurance savvy and safe on the roads. Keep bicycles and equipment like canoes or surfboards covered too. Anything that could get damaged and replaced, should be insured. You just need to keep cover up to date and manage any wear and tear issues as they arise.

The inner circle

Security features at home matter and your kids need to know what must be locked to keep insurance in place. It’s best practice for everyone at home to know what the checklist is for keeping safe at home, especially if these steps align to your insurance cover. 

It’s always a good idea to practice safe gas use in the house, for appliances like stoves, or if heaters begin to emerge in the colder months. Safety around open flames is also important and even though freestanding homes don’t require a fire extinguisher by law, having one or even two could literally be a lifesaver.

Your digital set-up

Many families have internet access at home, with various individuals and devices signing into many different social or email accounts and apps over WIFI. Keeping passwords updated and installing proper anti-virus software is so important. With many of us working from home, the risks for cybercrime activity have increased even more. Instilling safe online practices throughout your family home is a very sensible move to make.

Get some extra support

Working closely with a financial adviser can help to fit insurance into your life, alongside the various products you need to protect your family. Don’t delay, life is too short. Accidents can happen, and it’s best to be ready to deal with them. Insurance definitely makes dealing with life’s surprises easier and more affordable, provided you keep up with the terms and conditions of your policy.

Article written by Bertus Visser, chief executive of distribution at PSG Insure
Featured in Cover magazine
Pictures by Pixabay

Nothing says winter like cuddling up in front of a roaring fireplace or toasty heater with a cup of coffee or hot soup. Wood burning fireplaces remain a popular and most importantly, inexpensive way to heat your home and add ambiance on a cold winter night.

But this can be one of the biggest threats as many household fires start by accident when people are careless with open flames. Fires can start suddenly and spread quickly. The main sources of fires in the home are cookers, candles, electric blankets, fires and heaters.

'Know your insurance cover'

Bradley Du Chenne, CEO of online comparison website Hippo, says it is important that people understand what cover they prevent any fire-related claims from being rejected.

Insurance cover for fire damage will depend on which type of cover you have, be it car insurance, buildings insurance, household insurance or business insurance. “You cannot, for example, claim for fire damage to your furniture if you only have buildings insurance,” says Du Chenne.

Following are some important do’s and don’ts when it comes to fire safety:

Do’s

·       Install smoke alarms and have them linked to your alarm system. Test them regularly, about once a month.

·       Buy at least one fire extinguisher for your home and have it serviced regularly.

·       Unplug appliances at night unless they’re designed to be left on (your fridge for example).

·       Know your emergency numbers and what to do in an emergency – Plan and practice your escape route and keep exits clear.

·       Check electrical cables for faults and take note of warnings on electrical appliances.

·       Keep low when exiting a smoke-filled room and cover your nose and mouth with a damp cloth.

·       Work out an emergency fire drill with your family.

Don’ts

·       Leave a burning candle, heater, pot of oil or fire unattended – ever.

·       Don’t dry clothes on fireguards or heaters and place portable heaters at least one metre away from anything that might catch fire.

·       Don’t smoke anywhere you might fall asleep.

·       Try to put an oil fire out with water. Try turn off heat, use a fire blanket or a DCP (dry chemical powder extinguisher) to extinguish.

·       Open a door which is hot to the touch.

·       Go back into the house if you’ve made it outside safely.

·       Go into a room that is on fire.

Apart from the obvious step of insuring your property against fire, it is always wise to take precautions and do common maintenance on what is possibly your most valuable asset. Something as simple as checking that contractors and electricians have certification that is valid and current could save you from dealing with potentially dangerous and costly consequences too.  

Whatever heating methods you use this winter none of them are guaranteed safe, so remember to take the necessary precautions. Fires can be deadly and devastating it is therefore vital to teach your children about fire safety from a young age.

For assistance with your Home Insurance requirements please visit our website www.esbrokers.co.za

Article courtesy of Property 24
Photos by Pixabay

According to City of Johannesburg Emergency Management Services spokesperson, Robert Mulaudzi said, paraffin stoves and candles remain the most common cause of fires in informal settlements, whilst electric and gas heaters pose a significant challenge for EMS in other neighbourhoods. There are, however, countless other ways in which house fires can start.

“One of the biggest concerns around house fires is the belief that ‘it can never happen to me’,” says Ricardo Coetzee, Head of Auto & General Insurance, “The fact is that it can and will if you let your guard down. It takes only one ember close to a flammable material, one faulty gas hose or wire or one switch left on or in an open setting for you to become part of the statistics of total loss of your property… or worse.”

The following safety tips can help prevent winter warmth turning into a chilly catastrophe: 

Trust the pros: Make sure that all heating appliances and devices are SABS approved and, where applicable, installed by a certified service provider. Improperly installed heating devices have been the cause of numerous deaths in South Africa.

Read and obey the manual: It’s crucial to operate devices within manufacturers’ limits. Setting a device to maximum heat for extended periods of time, not placing a device on a level surface, moving it around whilst in operation or charging a device for longer than recommended, for example, could pose a serious risk.

Wire and pipe check: Make sure that appliances and other heating devices, as well as their piping and wiring, are in a good, safe working order. Take gas bottles to your nearest gas retailer to have them checked for leaks on a regular basis. This includes gas bottles used for heaters, braais and stoves.

Keep an eye: In the US, fires resulting from cooking, and more specifically unattended cooking, is a major concern. Never leave heaters, electrical blankets, candles or stoves unattended. Exercise special caution before going to bed at night to make sure that all heat sources are turned off.

Plug pressure: Do not overload one single power source. Unplug and switch off all electrical appliances that are not in use.

Vent wise: Make sure that heating, electric and electronic devices are in a spacious and well-ventilated spot to prevent overheating. Do not cover heaters with clothing or other material that you wish to warm or dry.

Light first, gas second: If you have a gas heater or cook with gas, light the match or lighter first, before turning on the gas.

Declutter: Keep clutter to a minimum in and around your home, as this could add fuel to a fire, and keep flammable materials, including fuels, far away from heat sources.

Smoke smart: If possible, install smoke detectors throughout your home.

Arm’s reach: Have a fire extinguisher available, specifically near the kitchen and other areas where heat sources are frequently used. Make sure that you know how to activate and operate it.

Emergency plan: Make sure that trip switches and emergency cut-off valves are in good working order. Have all emergency contact details within easy reach and don’t wait until a fire is out of control before contacting emergency response teams.

“Attention to detail and continued vigilance can save your home and/or the lives of your loved ones, so it’s imperative to not save fire safety discussions for later, when it may be too late,” says Coetzee.

“In the event that calamity does strike, always remember, firstly, that your life is more important than any possession and, secondly, that having comprehensive insurance in place should be non-negotiable.”

For assistance with Home insurance please feel free to visit our website www.esbrokers.co.za.

Article courtesy of Property 24
Pictures by Pixabay

Taking out car insurance is a responsible action. Depending on the cover you choose, you will protect both yourself and anyone involved in an accident with you.

However, what happens if you use your car for commercial purposes? We have a look at the impact of different uses of a car on your insurance, and we specifically consider commercial use.

The different uses of a car, and insurance 

According to Caron Whitfield, head of marketing and distribution, it’s very important to let your car insurer know what your vehicle will be used for. Most personal insurance policies provide cover if you use the vehicle for one or all of the following reasons:

· Social use: This means you can use the vehicle for private and pleasure purposes, for example, going to the shop, taking the kids to school, and going on holiday.

· Private and professional use: This means the cover includes social use, but is also extended to include professional purposes like travelling to work and back.

· Business use: If the nature of your job means that you spend more time in the car than you do in the office, you need to have your vehicle signed up for business use. For example, salespeople, real estate agents, and reps will choose this option.

What about the commercial use of a vehicle? 

“Nearly all personal policies will not provide cover for vehicles that are used for commercial purposes. Commercial use is when your vehicle is used as a tool of your trade.”

She points out the following examples that won’t be covered by a personal policy:

· Vehicles that are used to carry goods or business equipment, such as plumbers, building contractors, and delivery companies.

· Vehicles used as Uber, Bolt, taxi, or shuttle services.

· Carrying fare-paying passengers, which includes school transport but excludes lift clubs.

· Driving instruction for reward.

Racing in contests, rallies, or trials would also be excluded.

Ayanda Mazwi, senior assistant ombudsman at the Ombudsman for Short-term Insurance, points out that a vehicle can specifically be insured for commercial purposes.  

“The appropriate category under which to insure the vehicle will depend on the individual underwriting criteria or guidelines of a particular insurer,” says Mazwi.

“Some insurers will cover a vehicle that is periodically used for business under a personal policy. The cover, however, may be subject to specified terms and conditions, for example, the frequency of business use or a nominated driver,” says Mazwi.

She points out that, depending on the risk factors, an insurer may require that the vehicle is covered under a commercial policy.

“Our advice to consumers is to give the insurer or broker full details of the vehicle use so that it is covered under the correct category to ensure a valid policy,” says Mazwi.

Whitfield says that if you are in any doubt as to what class of use should be noted on your policy, please contact your broker or financial advisor.

Click here for any assistance

By Isabelle Coetzee

Article featured in Just Money

The Osti receives countless complaints from policyholders who are unhappy with the use of aftermarket parts, which they feel compromise their car’s performance or safety.

“Our approach to the OEM versus aftermarket part debate has been consistent over time,” says Peter Nkhuna, senior assistant ombudsman at the Osti. “We hold that the replacement of damaged parts with aftermarket parts can be undertaken where this is feasible and does not result in the consumer being prejudiced.”

Prejudice arises from the compromise of service and maintenance plans or warranties as well as safety considerations. Nkhuna notes that whether or not the use of aftermarket parts results in prejudice must be judged on the merits of each dispute.

South Africa’s insurers have slightly different views on replacement parts, but are reasonably aligned on the overarching principles. They can, and often do, elect to use aftermarket parts when repairing vehicles that are outside of a manufacturer’s warranty.

“It is international best practice to fit CAPs during repairs on motor vehicles outside of warranty or motor plan; our focus is on quality and meeting safety standards [with due consideration for] the cost benefits to both the policyholder and insurer,” said Gerhard Genis, head of quality management at Santam. He says CAP parts cost a fraction of their OEM equivalents and that the use of these parts often means the difference between repairing a vehicle and writing it off.

“An insurer has a legal obligation to indemnify you and to be reasonable in doing so; what is reasonable will depend on the specific circumstances of each claim,” says Nkhuna.

Genis says the central premise of insurance is to put the policyholder back into a similar position as before the loss or damage. But he says insurers are inconsistent in describing their replacement parts practices in their policy wordings. “Most local motor policies are silent regarding what type of spare parts should be used in a repair, and it is not usually addressed in the contract between insurers and policyholders,” he says. Santam’s policies are underwritten on a like-for-like basis, which gives the insurer the right to use alternative parts as long as these do not compromise the quality or safety of the repair.

Rajah says Hollard’s practice is to ensure that the vehicle claims assessor discusses the use of CAPs with the policyholder. You should, therefore, keep a close eye on the quote and interrogate your insurer or panel beater on the parts approved for use in the repair. An insurer should seek your consent before instructing a vehicle repairer to use aftermarket parts, Rajah says.

Nkhuna says the law is the final arbiter in replacement parts disputes: “Regardless of the provisions contained in an insurer’s policy, an insurer still has a legal obligation to be reasonable in its approach. The party that can substantiate its case will be the one that ultimately prevails.” This means you cannot insist on an unreasonable repair where an equally effective but less costly repair is possible. Likewise, you cannot insist on a replacement where a repair would be adequate. “The approach of keeping costs down is generally good for the collective of insurance consumers, even though it may compromise individuals in specific circumstances,” Nkhuna says.

Consumers also raise concerns that vehicle manufacturers might sidestep their ongoing liability if aftermarket parts are used in a repair. “Once a vehicle’s warranty has expired, the manufacturer, unless undertaking a specific parts recall campaign, carries no liability should a part failure occur,” says Rajah. “Where CAPs are sourced and fitted on vehicles that are out of their manufacturer warranty period, the parts supplier holds the guarantee.”

In 2009 the Osti issued a statement saying that “original factory-supplied components must be fitted whenever a critical component of the motor vehicle is damaged or where the warranty or maintenance plan of a vehicle may be adversely affected by the fitment of other components”. This position holds to this day, though it does not describe all circumstances in which OEM components should be fitted.

Article written by Gareth Stokes, who is a freelance financial writer specialising in insurance.
Featured in Insurance On Line
images by - Pixabay

According to a recent article release on Sunday 4^th April 2021 in Sunday World, the headlines read “SA Could be plunged into total darkness”. Click here to see full article.

This relates to Eskom losing a court battle to stop a foreign-based multinational software corporation , Oracle Corporation, from withdrawing its crucial services over a dispute relating to billions of Rands owed by the power utility.

Without a proper supply of electricity from Eskom, almost the whole of South Africa will be in darkness and come to a standstill, potentially endangering the life, personal safety, or health of the whole or part of the population, according to court papers.

Energy expert Ted Blom said the developments pointed to Eskom management’s “incompetence”.

A Blackout is a total crash of the power grid to an imbalance between power generation and power consumption, as hospital patients in Venuzuela found out early in 2019 during a five-day nationwide blackout leaving an estimated 26 people dead. Unprepared for the sudden loss of power, back-up generators in some hospitals failed, while others only had enough energy to keep a few of the most vital wards functioning.

In January 2008 Eskom controversially introduced “Load Shedding”, planned rolling blackouts based on a rotating schedule, in periods where short supply threatens the integrity of the grid. We have all become accustomed to the new way of life, some companies and individuals have already adapted by been pro -active by installing generators, solar panels and Uninterrupted power supplies to their business premises or home’s, but a Total Black out is very different.

“Are South Africans prepared for blackouts that could potentially last days”?

From an insurance point of view have you ever stopped to think how a Total Blackout could affect you and your business?

* If you don’t have a gas stove at home, what backup plan do you have in which to prepare meals.
* If you have an office with staff, what outcome would be met without the use of computers and access to the internet.
* If you manufacture products, you will experience an interruption in your turnover due to no output over a few days, unless you have massive generators with plenty of fuel.
* Not to mention businesses and homes that are vulnerable to theft/burglary due to the alarms system not been functional. (if a policy condition)

We have been asked the question “Does my insurance policy cover me against Total Blackouts?”, so let’s take a look at the Business Interruption section of a typical business policy as well as the extension “Public Utilities”, and what it covers – to help clear up any confusion.



If you have selected the Business Interruption section , it covers the following defined events:
“Loss following interruption of or interference with the business in consequent of damage occurring during the period of insurance at the premises, attached to the Fire, buildings combined, office contents or any other material damage section of the policy, but only in respect of perils insured under the Fire section (termed damage).”
The Trigger is a Fire, lightning, storm, flood, explosion etc, which is an insured peril, therefore it will be covered.

There are two extensions which typically cover the failure of the public supply of electricity to the insured’s premises supplied by Eskom.

They are:

* Public Utilities – Insured perils
This extension covers the loss consequent upon damage by Fire or allied perils to property of a public authority providing water, gas and electricity to the insured premises.
e.g Eskom has a Fire and can’t produce electricity for a few days/weeks which prevents production.
The trigger is a Fire, which is an insured peril, therefore it will be covered.

* Public Utilities – extended cover
The interruption is the same as the previous point except insured peril is replaced with damage.
e.g Eskom has cables stolen and electricity supply is interrupted for a few days/weeks which prevents production.
The trigger is damage to the cables, which is an insured peril, therefore it will be covered.

However, Rolling Blackouts resulting from Eskom’s incompetence, mismanagement, failure to maintain infrastructure or inadequate planning is not an insured peril in terms of the Business Interruption section of a business policy.
The mere withholding of electricity by the authorities is excluded.
In the event of load shedding ocuring merely as a result of the fact that there is insufficient capacity at the electricity generation unit, no cover will be in place.
There is no trigger, therefore the policy will not respond and there is no cover.

If Load shedding continues and if Blackouts are looming, it’s time for each policyholder to start implementing measures NOW, in which to prepare for the dark days ahead, should total blackouts become the new norm.

When you take out car insurance, your monthly premium is a given. However, you may also need to pay an excess amount if you claim from your policy.

But which factors may increase your excess, and how can you bring it down? We answer these questions, and we also consider how you can prepare for an excess lumpsum.

Tip: Excess or not, you should always insure your vehicle. 

Should you raise your premium to reduce your excess? 

Colman says that if your appetite to pay an excess amount is low, you should ask your insurer for an excess-free quote. Most insurers will offer an excess-free quote by charging a higher insurance premium payment. 

You can also enquire about excess waivers that often are on offer for persons not gainfully employed over the age of 55.

According to Caron Whitfield, head of marketing and distribution at the Apio Group, there should be no surprises at claim stage if you are with a broker.

“When a policy is taken out, all applicable excesses are discussed with the client so that there are no unwelcome surprises when it comes to claiming,” says Whitfield.

“The option to waive excess is available with most insurers. Basically, you pay a bit more each month to have an excess-free claim. Some excesses may not be waived, for example, an additional theft excess if you do not have a tracking device installed, and it was an insurer requirement,” says Whitfield.

How to prepare for an excess 

Whitfield believes that the first step to ensuring you’re prepared for an excess is to align your insurance cover with your budget.

“Make sure that you can afford the excesses that will apply in the event of a claim. It does make some financial sense to have an emergency fund that can be used in these instances, or an emergency credit card,” says Whitfield.

Colman says that to prepare for the worst, you should read your policy document and fully understand the excess impact on a total loss claim. 

“It’s also wise to shop around each year for the best insurance deals. Remember only looking at bottom-line premium savings can be a bad decision in the long run, as the level of excess contributions and impact on your disposable income should also be a major decision-making factor,” she explains.

For any assistance and/or advice regarding your vehicle excess please feel free to contact us www.esbrokers.co.za/contact-us  

Article by Isabelle Coetzee, featured in Just Money