These are the most common home insurance claims during the festive season – here’s how to protect yourself

 ·23 Dec 2022

The festive season is here, which means long summer holidays and celebrations with friends and family. However, this also comes with heightened risks of home break-ins and injury – as well as power surge damage thanks to rampant load-shedding.

These are three of the most common reasons for home insurance claims over the holiday season, according to Naked insurance co-founder Sumarie Greybe.

During December, many people go away on holiday for an extended period or spend more time out and about to socialise and shop. This creates opportunities for criminals to take advantage while homes stand empty, said Greybe.

According to Stats SA, 5.4% of all households experienced housebreaking over the 2021/22 financial year – representing an estimated 1.4 million incidents. Greybe added that a large portion of these home break-ins were committed in December, noting that “we [Naked] usually see a spike in claims for theft over the festive season”.

The provinces that experienced the most break-ins in 2021/22 – measured by the proportion of break-ins relative to the number of total households – were KwaZulu-Natal, the North West, and the Eastern Cape.

The proportion of housebreakings and the absolute number of housebreakings across South Africa’s nine provinces over 2021/22 is shown below – sourced from Stats SA.

Another spike in insurance claims noticed by Naked is personal liability cover.

Many of us do a lot of entertaining at our homes over the festive season. These activities tend to increase the risk of someone who is not a family member having an accident on your property.

Greybe also noted that insurance companies had experienced a dramatic rise in claims for power surges in 2022 due to the worst year of load shedding in South Africa’s history.

According to EskomSePush, as of 13 December 2022, the country has experienced 3,354 hours (140 days) of load-shedding – which has led to frequent power surges – destroying many expensive household appliances.

How to protect yourself from having to make these claims

Home break-ins

To avoid your home being broken into, Greybe suggests those going on holiday or out-and-about should:

  • Lock up any valuables you aren’t taking with you when you go on holiday. Consider investing in a wall safe if you have precious valuables such as heirlooms, jewellery and important documents.
  • Ensure all windows are properly closed, and doors are locked, and draw your curtains before you leave or depart on holiday. Make sure your locks are all in good condition. Bear in mind that it can be challenging to get a claim paid if your home is robbed and there are no signs of forced entry.
  • If you’ve bought expensive new furniture or electronics or invested in new fittings and carpets, update your cover before you go on holiday. Double-check that your important things are insured for replacement value, not what you paid for them a few years ago.
  • Always activate your alarm before you go out. Check that you have a valid subscription with an armed response company, especially if you told your insurance provider that you have an alarm.

Injuries on your property 

Personal liability cover provides financial and legal protection should someone claim against you or take you to court because they believe you’re responsible for accidental injury, loss or damage they have suffered on your property.

“Your home contents policy usually includes personal liability cover for incidents inside and outside your home. This covers a friend breaking an ankle after falling into a ditch in your garden or your toddler accidentally bashing someone’s car with a shopping trolley in the mall parking lot,” said Greybe.

However, Greybe said for your liability coverage to be valid, homeowners should ensure the home’s maintenance is up to date and take reasonable steps to avoid losses or injuries. For example,  if you host a party, ensure those loose electric wires get fixed by an electrician before your guests arrive.

Power surge damage

Load shedding is unlikely to subside during the holiday season, and insurance companies have seen an increase in claims for items damaged due to power surges after load shedding. Water and power outages can be harsh on your geyser, and “while some of these risks will be covered by a home buildings and contents policy, maintenance-related issues and incidents related directly to frequent water or power cuts are often excluded,” said Greybe.

Considering this, Greybe suggests the following tips:

  • Turn off and unplug all non-crucial electrical appliances and switch off geysers when you’re away from home for long periods.
  • A surge protector plug can protect sensitive electronics from power surges and costs almost nothing.
  • Switch off and even unplug appliances and devices you aren’t using. It can help save your appliances and electronics when there are power cuts/surges.
  • A good insurance policy will include 24/7 emergency assistance. For example, your insurance provider can help the person watching your home while you’re away if your geyser bursts or they need a locksmith.

Read: Major red flags over the use of spam-blockers like Truecaller in South Africa

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