Home insurance companies may suffer loss as a result of Highveld fires

Over the last three years, insurance companies have been inundated with claims of floods. The problem now, according to a recent report, is continuing hot weather. Areas in the interior of the country are experiencing higher than normal temperatures with little to no rain resulting an increase in runaway fires.

According to Forestry SA, 2007 saw the worst runaway fires in recent years amassing damages to a whopping R1,4 billion. South African Weather Service now warns of fire in the Highveld, including the Free State and North West provinces; provinces with high numbers of thatched-roofed homes.

Homeowners in such areas with such roofs, must make sure that their home insurance policies include damage and loss as a result of fire, and that their home insurance company is aware that their roof is thatch. A thatch roof is considered material information on a home insurance policy. Failing to inform your insurer of it, can result in them rejecting any claims on the grounds of non-disclosure. This may mean an increase in home insurance premiums, but that is still cheaper than having to pay for the total loss of the home and its contents.

Insurers are also under obligation to perform proper maintenance on their homes to avoid unnecessary loss. For such homes, this may mean checking fire breaks and fire extinguishers. If an insurance company discovers that damage as a result of fire (or flood) could have been prevented with routine maintenance, then they have grounds to repudiate the claim.

Click here for information on home insurance claims and maintenance.