Rebecca Brown
The Importance of Homeowners Insurance Following the Garden Route Floods: Protecting Your Home from Natural Disasters
The recent Garden Route floods highlight the urgent need for homeowners’ insurance to protect homeowners from the astronomical cost of repairs to their properties following any kind of natural disasters, especially in suburbs along the East Coast of South Africa which are now classified as high flood risk areas – that were hit with devastating floods. In the case of such an event, flood cover often comes to the financial rescue of home- and business owners alike.
But what exactly is flood cover?
Flood cover is (an item) included in the ‘Fire’ or ‘Buildings Combined’ or ‘Homeowners’ section of an individual or businesses insurance policy – specifically designed to indemnify homeowners from the after-effects of flooding, such as the cost to repair structural damage and the loss of or damage to possessions. In South Africa, insurance policyholders have the benefit of purchasing multi-peril policies in contrast to other countries where each section must be purchased individually. Meaning as a South African with homeowner’s cover, you have cover for a variety of potential losses and added benefits as opposed to only those of your initial choice.
The standard Homeowners section in a domestic insurance policy is inclusive of the following covers:
- Power Surge
- Accidental Damage (to Buildings and Fixed Machinery)
- Flood Cover
- Subsidence and Landslip
- Fire
High flood risk areas are typically characterized by factors such as proximity to water bodies, low-lying terrain, and inadequate drainage systems. Considering the devastation of last years’ wide-spread flooding, insurance companies are becoming hesitant to cover homes in these regions due to the increased likelihood of claims and challenges in accurately assessing the level of potential damage, should this level of flooding occur again. It is important to keep in mind that insurance companies have the right to deny taking on a risk that is in too close of a proximity to water or low-lying terrain.
With regards to ensuring clients have cover from an insurer’s point of view, it’s crucial to promote proactive measures such as infrastructure investment and public awareness campaigns to mitigate flood risk and protect communities – this proactive action will help protect homeowners, business owners and those insuring them alike. By securing homeowners insurance cover, homeowners can safeguard their properties and mitigate financial losses in the face of a multitude of unforeseen perils – including flooding and natural disaster.
Let’s work together to build more resilient communities and ensure that homeowners have the protection they need against the unpredictable forces of nature.
