Manage risks this holiday season

Cape Town - Consumers travelling during the festive season need to take all the necessary precautions to guarantee that their homes and vehicles are adequately insured.

This is according to Annelie Smith, corporate executive at RBS, who points out that the December holiday period holds a heightened risk for consumers.
 
“The likelihood of house break-ins, road accidents and other types of damages such as burst geyser pipes increase significantly during the holiday season. Most of these incidents can be insured against but need to be managed as much as possible in order to prevent insurance claims from being denied,” she says.
 
Smith notes that the first thing homeowners need to check is the battery powering their house alarm and security system.

“If your home has an alarm system, an insurer is very likely to repudiate a claim if the system was not activated during the time of the break-in. If the house’s power is cut and the battery is not operational, the insurer also has good reason not to pay. It is, therefore, imperative for homeowners to get their security company to check alarm batteries and replace it if need be before they leave on holiday.”

Another risk that is likely to cause repudiated claims, according to Smith, is related to trailers and caravans.

“Drivers need to be aware that an ordinary driver’s license (Code B) only allows them to tow trailers lighter than 750kg. For anything larger, such as a caravan, one requires a Code EB license. This legislation has been around for some years already, but we still find that the vast majority of drivers are unaware of this requirement."

Smith adds that many drivers also do not take the weight of their trailer contents into account.

“Packing a trailer with items such as gas bottles and other camping equipment could easily put the total weight of the trailer over 750kg. In the event of an accident, an insurer could possibly deny any claims by arguing that the driver was not properly licensed to tow anything over a specified weight,” Smith states.

Smith says consumers also need to check their geysers before going on holiday.

“The state of a geyser decline over time, and burst pipes can become a massive problem when the home’s occupants are absent for long periods of time. The longer a defective geyser is left, the more extensive the water damage to ceilings, floors and home contents will be, and the more likely that the cost of the damage could exceed the specified limit of the home insurance policy. Consumers are expected to have their geysers checked and replaced if necessary every year,” Smith says.
 
Smith notes that mall robberies also increase significantly over this period. With a number of mall robberies already having taken place in December, consumers need to be vigilant while doing their holiday shopping.
 
“Unfortunately innocent by-standers have also been known to fall victim to robberies in malls and stores, and should take ownership, as most businesses do not provide insurance cover for their customers,” says Smith.

“It is important to understand the risks that consumers are exposed to, and to take all the reasonable precautions. Ensure that your policies are in place and up to date so that you can have the worry-free holiday that you deserve.”