Fire & insurance: what you need to know
Category News
According to the integrated fire management initiative, Working on Fire, South Africa experienced the worst fire season in seven years with the Working on Fire programme having had to attend over 2 000 fires since June 2014.
With February usually being one of the windiest months of the year, and wind being the main driver of fires, consumers are being urged to ensure that they have proper insurance cover in place to avoid huge financial losses caused by fire.
This is according to Christelle Fourie, managing director of MUA Insurance Acceptances, who says rising temperatures at the beginning of the year could also lead to an increase in fires breaking out across the country.
“Without adequate insurance cover in place, consumers are at risk of being left with hefty financial bills for the damage caused by fires, as well as additional charges for the use of emergency fire services in the event of an incident,” she says.
Depending on the city and the nature of the fire, homeowners may be subjected to a fee for the usage of fire personnel and resources that have been used to put out a fire at a private residence.
According to the Fire Brigade Services Act of 1987, the controlling authority may apply a fee for the attendance of the service, use of the service and equipment, as well as for any material consumed, such as water or foam.
Fourie says it is vital that homeowners understand that the various cities in South Africa have different policies in place regarding the usage of emergency fire services.
“It is important that consumers are aware of what services are covered in their area and what they may be expected to pay for, especially if they do not have adequate insurance cover in place.”
Homeowners who may be more prone to fire damage, such as those living close to mountains or dry areas, or those in thatched roof buildings, should speak to their insurer about obtaining more comprehensive cover.
“Some insurance policies offer cover for fighting approaching fires, which includes a private helicopter bombing water on their property in the event of a serious fire approaching.”
This may not be suitable for everyone, but it can be particularly valuable for those living in a fire prone area, especially as fires have been known to destroy water pipes and depleting water supply and pressure, thereby stopping firemen from effectively battling a fire, she says.
In addition to having the right insurance cover in place, Fourie says homeowners should speak to their insurance provider to update their insurance policies to avoid being underinsured should they suffer huge damages.
“Underinsurance is one of the biggest issues that homeowners face and many make the mistake of thinking that their home should be insured for its market value. Instead, policyholders need to insure for what it would cost to rebuild the property, not what it would cost to buy,” she says.
Take for example, a home that has been bought for R2 million and is insured for R2 million. Should the property be burnt to the ground, she says the insurance company will calculate the cost to rebuild it to the same standard as it was before. If it is found that the property would cost R4 million to rebuild, however, it means the building has been underinsured by 50%.
“In this instance, the insurer will only pay out half of the claim and the consumer will have to make up the remaining R2 million required to rebuild the property.”
Fourie says there are a number of simple measures that homeowners can take to protect themselves against fire:
- Clearing dry bushes surrounding their home.
- Regularly pruning trees.
- Having smoke detectors placed inside the home.
- Storing flammable liquids outside the home.
- Keeping the home clear of any material that may cause fire.
- Ensuring that community emergency numbers are on hand at all times.
“Fire is one of the most devastating causes of loss or damage to a home, which can financially cripple homeowners if a comprehensive insurance policy is not in place.”
Therefore, it is important that policyholders speak to their broker to ensure that their risks of property and financial loss are mitigated, she says.
Author: Property24