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Burst geysers continue to be the primary contributor to building claims, with a marked increase of 16% YOY in 2020. This is according to leading short-term insurer Santam's 2020/2021 Insurance Barometer.
This considerable rise in frequency is unusual, pointing to the hidden impact of the pandemic on our homes, according to Rowland Ramalingam, Head of Non-Motor Claims at Santam Insurance who says in excess of R1.5billion was paid in property claims during 2020. As of April 2021, that figure was sitting at over R523 million with a total of 37 762 claims submitted.
The top home insurance claims up until April 2021 were as follows:
- Water tank, apparatus and pipes - mostly geyser and burst pipe claims
- Special perils - defined as storm type or hail claims
- Fire damage
READ: Buying a Home? Everything Your Insurance Company Thinks You Know, But You Probably Don’t
“There was a bigger volume of claims, but lesser quantum claims,” he says pointing to the stay-at home impact of Covid-19 as a key influencer. While there was a higher frequency of claims, the extent of damages appeared to be lower, possibly due to people being at home and being able to spot an issue faster.
"There was a big increase in geyser claims, storm claims and power surges. Burglary claims decreased in 2020. This is also likely due to more people being at home,” says Ramalingam.
READ: Home Emergencies | What it costs to repair a burst water pipe, and is insurance worth it?
"People showering and bathing more often increases wear-and-tear on geysers, which could be one possible explanation for this anomaly. The same reasoning could extend to a similar increase in other plumbing-related claims. On the home contents front, the more time spent at home, the greater the wear-and-tear on our appliances, and the greater the opportunity for accidental damage. Household contents insurance claims rose by 6% in 2020.
Try this handy building calculator tool to help you make an inventory of all the structures on your property. Or click here to have a professional risk assessment done.
Maintain your property
Ramalingam stresses the need to take care of your property regularly. He warns that rejected property claims, submitted as covered damage are often due to lack of maintenance.
READ: The main reason why home insurance claims are rejected, and how to avoid it happening to you
“A policy usually covers a sudden incident. You don’t plan for storm to happen. If the claim is due to a maintenance issue, like broken roof tiles the entire claim won’t be paid out. An example is if there is a storm and due to broken tiles, your ceiling and carpets are damaged, Santam will pay for the resultant damages and not the roof tiles. The Santam policy covers resultant damage, which some insurers don’t do and therefore would reject the entire claim in this example provided."
“Getting a reputable company to do your repairs is also very important. Have the foresight to prevent further issues for yourself down the road.”
Santam suggest the following action if you’ve suffered water damage as a result of burst pipes:
- Turn off your water at the mains by shutting off the main stopcock. This will stop the flow of water into the house and prevent any more water coming into the pipes that would lead to further damage;
- Switch off your main electrical supply, especially if any electrical sockets could be exposed to water;
- Report the incident to Santam’s 24/7 SOS and claims line (0860 505 911). A plumber will need to be dispatched in order to restore water flow, make any repairs needed and install any insulation required.
You can also use this online Santam directory to locate a trusted broker in your area or email clientportal@santam.co.za for assistance.
READ: MAPPED: SA’s most lightning-dense areas
Protect your home and business against lightning/fire damage
Surge protection is absolutely essential to any home and business in lightning prone areas. Installing a surge protector or lightning arrester will give you peace of mind during a storm and help prevent damage, suggests Santam.
It is also a good idea to get an electrician to check your wiring system regularly. And it could also save you money. Click here to understand the benefits of your home insurance or Click here to get a professional risk assessment done and ensure your covered against loss as a result of lightning (e.g. fire, business interruption).
Reasons to insure with Santam
Santam is South Africa’s largest short-term insurer, insuring risks of over R4 trillion. The company has paid out 99% of all claims made in the past year. We also offer the following cover and benefits:
- Comprehensive cover for your household contents in the event of water damage;
- Standard excess for vehicles and buildings; and
- Six free SOS services to all personal lines clients.
Want the full story? You can access Santam's 2020/2021 Insurance Barometer here.
Request a quote
If you have any questions about building insurance, speak to a Santam broker or contact them on 0860 444 444. If you’re an existing Santam client, you can add new items and make changes to your cover on the Santam client application.
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