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New homeowners are often so excited about their new status that they do not pause to think about things that can turn their dreams into a nightmare instead. Common emergencies can cause setbacks to new homeowners, such as burst geysers or pipes, damage due to fires or storms, or even theft.
“While it is easy to forget about preparing for the unforeseen when swept up in the excitement of moving in, it can be a costly mistake,” says Molebatsi Langa, head of retail strategic accounts at Old Mutual Insure.
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Rolling blackouts have become a common occurrence in our homes and we think we are prepared for it, but unfortunately there have been many incidents where residents put a pot on the stove or used a flat iron or hairdryer when the power cuts. When the power comes back on, a fire can start if the equipment was not turned off and left unattended. This scenario is devasting for any homeowner, especially if there was no or inadequate insurance cover.
New homeowners may also plan upgrades or home improvements to get around rolling blackouts by, for example, installing an inverter or solar panels. However, Langa says, beware of the fire risk that this poses, which can be started either from heat emanating from the system, or incorrect installations.
“While the policyholder is entitled to use an installer of their choice, ensure that the installer has experience and qualifications. All policyholders must undertake the necessary due diligence and research before hiring an installer. According to regulations electrical installations must be done by a qualified electrician, who must issue a certificate of compliance.
Langa says new homeowners must remember to check that they are adequately insured against fire risk when buying a new home. “South Africa is heading into winter and during the cold winter months fireplaces and other open flames tend to be the leading cause of fires. Power cuts also see homeowners use candles and paraffin lamps, which pose a fire risk.”
Although it is important to know that insurance typically covers fires caused by electrical faults, it is important for homeowners to not be negligent. Faulty wiring and appliances are the leading cause of fires at homes and that is why it is crucial to always use the services of a qualified electrician.
If you have a fireplace or indoor braai, clean your chimney flue regularly for ventilation and fire mitigation, use a fire screen to prevent any cinders or sparks from flying across the room and never leave a fire unattended.
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Remember that your insurance policy is not a maintenance programme, Langa says.
It is your responsibility to ensure regular maintenance of your home, such as removing leaves from the gutters to ensure weather-damage is minimised.
Your insurance contract will not cover losses such as ceiling rot or damp due to a leaking roof, which resulted from clogged gutters.
Langa says homeowners’ insurance typically helps to cover your home and contents. Most policies provide cover that may help pay to repair or replace your home, including the contents if you experience a sudden and unforeseen loss or damage. Buildings insurance provides cover against specific insurable events.
“Homeowners’ insurance may not cover all types of damage. For instance, if you intentionally start a fire in your home, homeowners’ insurance will not pay to repair the damage. It also typically does not cover damage caused by an act of war.”
You can be both under- and over-insured, Langa warns. “Ensure that your house and contents insurance cover is regularly reviewed so that you are not over or under insured. Buyers must be careful not to be insured in multiple places for one building, such as insurance through the bank, maybe the body corporate and their own private insurance.”
Your home is usually the biggest asset you will ever buy in your life. “Protecting this asset and its long-term value with decent insurance should be an important priority for new property owners.”
