The recent spate of unexpected tornados that have swept through South Africa have wreaked havoc across the country, leaving hundreds of residents in Gauteng and the Free State homeless, seriously injured or mourning the loss of loved ones.
According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, while the full extent of the damage from the tornadoes is still unknown many homeowners may be under the most pressure as they had either no, or inadequate, insurance in place.
“The severe level of underinsurance and lack of insurance in many instances in South Africa is worrisome. The government may provide financial assistance to those who have suffered loss from the unpredictable storm; however, it is unlikely to fully cover the total cost of the damage caused to homes.”
Fourie says that for those consumers who did not have home insurance policies in place, they could be looking at severe financial repercussions in order to restore their homes to its original liveable condition.
“As a rule of thumb, we are very fortunate in South Africa as property insurance policies tend to be fairly comprehensive in nature. As a result, most policies will automatically cover the damage caused by unforeseen weather conditions, so there is no need to take out specific cover against damage caused by storms such as tornadoes.”
“For example, if one looks at Mozambique, a country that experiences frequent tropical storms, the premium charged to cover against damage from weather conditions is far more expensive than in South Africa and cover against storms of this nature is usually excluded.”
Fourie says if South Africa were to see an increase in these types of destructive storms the overall risk exposure for the country would increase and could potentially result in the requirement for a specific cover against damage caused by severe weather conditions or a possible increase in property insurance premiums.
“One factor that does play a role in determining property insurance premiums, however, is the type of material used to construct the building. For example, buildings that incorporate wood or thatch are far more expensive to repair, which will mean higher premiums compared to a traditional brick house.’
“Those consumers who currently do not have property insurance policies in place should take this matter seriously and speak to a financial advisor immediately about the options most suitable for them. These types of storms could become more frequent in South Africa as weather conditions all over the world have become increasingly erratic and unpredictable,” concludes Fourie.
Article by Christelle Fourie (FA News)
According to Christelle Fourie, Managing Director of MUA Insurance Acceptances, while the full extent of the damage from the tornadoes is still unknown many homeowners may be under the most pressure as they had either no, or inadequate, insurance in place.
“The severe level of underinsurance and lack of insurance in many instances in South Africa is worrisome. The government may provide financial assistance to those who have suffered loss from the unpredictable storm; however, it is unlikely to fully cover the total cost of the damage caused to homes.”
Fourie says that for those consumers who did not have home insurance policies in place, they could be looking at severe financial repercussions in order to restore their homes to its original liveable condition.
“As a rule of thumb, we are very fortunate in South Africa as property insurance policies tend to be fairly comprehensive in nature. As a result, most policies will automatically cover the damage caused by unforeseen weather conditions, so there is no need to take out specific cover against damage caused by storms such as tornadoes.”
“For example, if one looks at Mozambique, a country that experiences frequent tropical storms, the premium charged to cover against damage from weather conditions is far more expensive than in South Africa and cover against storms of this nature is usually excluded.”
Fourie says if South Africa were to see an increase in these types of destructive storms the overall risk exposure for the country would increase and could potentially result in the requirement for a specific cover against damage caused by severe weather conditions or a possible increase in property insurance premiums.
“One factor that does play a role in determining property insurance premiums, however, is the type of material used to construct the building. For example, buildings that incorporate wood or thatch are far more expensive to repair, which will mean higher premiums compared to a traditional brick house.’
“Those consumers who currently do not have property insurance policies in place should take this matter seriously and speak to a financial advisor immediately about the options most suitable for them. These types of storms could become more frequent in South Africa as weather conditions all over the world have become increasingly erratic and unpredictable,” concludes Fourie.
Article by Christelle Fourie (FA News)
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