Top tips for SA homeowners: What you can do to help your insurer process your claim

Top tips for SA homeowners: What you can do to help your insurer process your claim

It’s fair to say that many homeowners compare their insurance policies to a ripcord – the handle you pull to deploy a parachute when you’re in free fall. Until then, it’s just a piece of paper gathering dust that only needs to be taken out when the moment arises – and we hope it never does. However, making your insurance policy work for you requires an approach that’s more ‘hands on’. You may be pleasantly surprised at how far a little bit of due diligence can go, especially in the event of an unexpected claim.

Incidents caused by hail, water, lightning and other adverse weather events are difficult to predict and the damage caused can be more extensive than many homeowners realise.

The good news is that there are proactive steps you can take to minimise the potential damage. Taking these measures won’t only help reduce the stress and inconvenience of property damage, but can also help streamline the process if a claim is initiated.

Make regular maintenance a must
With global warming on the increase, it is important to conduct regular maintenance to mitigate the impact of storm damage. Regularly clearing away leaves, branches and debris from gutters and downpipes can help ensure that any gushing water (during a storm) has a clear exit path into storm drains. In the long term, this could reduce the potential for leaks and internal water damage to your property as well as the valuables within your home.

Another important way to minimise damage is roof maintenance. Homeowners should check their roofs for broken or chipped roof tiles. Even the smallest damage to a roof tile could represent a vulnerability that will ultimately worsen as the roof is buffeted by wind, hail or rain. Waterproofing your roof is also vital – not only in protecting your property from water damage, but also in expanding your roof’s lifespan and preventing the growth of mould and mildew.

Lightning strikes are becoming more prominent in certain areas. To combat the impact of a lightning strike, surge protection can be installed in your distribution board, or make use of surge protection on plugs for electronic appliances. This precaution has become particularly important over the last few years, with on and off load shedding leading to power surges when an area’s electricity is suddenly restored.

Know your policy prerequisites
Not only is regular maintenance an effective way to prevent unnecessary claims, but it is also necessary to ensure that the policy conditions are met. Most insurers include in the policy conditions that policyholders need to take all responsible steps and precautions to prevent accidents or losses.

Every policy will include terms and conditions that the insured needs to meet in order for a claim to be valid. These terms will differ from policy to policy and will depend on several factors including your risk profile, the geographical location of your home, the replacement value of what is insured, and the level of cover you have.

For example, depending on the risk factors involved, insurers (and their underwriters) may propose more stringent underwriting criteria to areas where claims are more predominant for theft of fixtures and fittings. The underwriting criteria may include that additional security measures should be installed at the premises. In these cases, it is the responsibility of the homeowner to ensure compliance with the terms and conditions, to make sure that claims can be settled for these occurrences.

Keep your records in order
Another often overlooked yet essential aspect of a homeowner’s responsibilities is record keeping. Because insurance policies typically cover property on a replacement value basis, it is important for you to ensure that your home and its contents are insured for the current replacement costs of your insured property – rather than outdated valuations or the market value.

Failing to insure on the replacement value will result in the property being underinsured. At claims stage, the insurance company will use the ‘average condition’ to address underinsurance, which will mean that the policyholder becomes responsible for the difference between the replacement value and the underinsured value, with resultant financial losses.

It is advisable to take clear photographs of valuables, digitising receipts and warranties, and storing user manuals where possible. These records can be used as proof of ownership at claim stage, to assist insurers in better understanding the items that need to be replaced.

After all, your insurer doesn’t know the daily ins and outs of your household – making it your responsibility to provide the details that enable them to restore you to the position you were in before the claim occurred. Without this evidence, even a valid claim can be delayed or reduced.