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IN THE wake of the disastrous earthquakes in Japan and New Zealand, some SA households may be well advised to find out whether they have the necessary insurance coverage.
The first detailed study about seismic risk to the SA insurance industry was done in 2003 by the University of Pretoria’s Aon-Benfield Natural Hazard Centre. It showed that seismic risks should not be an insignificant component in the grading of properties in Cape Town, Johannesburg and Durban for insurance purposes, says Christelle Fourie, MD of MUA Insurance Acceptances.
Randolph Moses, MD of Hanover Re Africa, says the risk of earthquakes is bigger in Cape Town than in Johannesburg, despite the earth movements triggered by deep mine activities in Gauteng. In 2005, earth movement in Stilfontein measured 5.3 on the Richter scale and killed two mineworkers. A government report blamed mining activities.
Moses says there is a fault line which starts in the sea about 9km from the Koeberg reactor and then runs through Milnerton and the Cape Flats.
Apparently SA's first big earthquake happened in 1620 close to Robben Island, and was witnessed by a ship passing through. The next major one was in December 1809 in Milnerton, and measured an estimated 6.1 on the Richter scale.
No to nuclear
According to Fourie, some of the other riskiest areas are St Lucia in KwaZulu-Natal (6.0-6.5 in 1932), Koffiefontein in the Free State (6.0 in 1912) and Ceres and Tulbagh (6.1-6.3 in 1969).
Insurance coverage for earthquakes is usually part of even the most basic short-term insurance packages. However, some insurers won't pay for damage caused by mining activities. People who live in mining centres, and particularly those in Gauteng, should make sure they are covered.
Most policies will offer cover against sinkholes and landslides, but this can be limited with specific exclusions – like earthquakes caused by mining, says Lizette Erasmus, marketing manager at Integrisure. Damage to your outside buildings, swimming pool, tennis courts and garden can also be excluded.
Comprehensive car insurance will usually provide full cover for any damage or losses due to an earthquake.
When it comes to tsunamis, your policy will usually cover storm damage. But owners of properties on the water's edge may face exclusions. If flood or water damage is a regular occurrence your nsurer may refuse to cover such damage, or demand a higher excess payment.
Nuclear damage is excluded in all local policies, says Erasmus.
- Sake24
For business news in Afrikaans, go to Sake24.com.
The first detailed study about seismic risk to the SA insurance industry was done in 2003 by the University of Pretoria’s Aon-Benfield Natural Hazard Centre. It showed that seismic risks should not be an insignificant component in the grading of properties in Cape Town, Johannesburg and Durban for insurance purposes, says Christelle Fourie, MD of MUA Insurance Acceptances.
Randolph Moses, MD of Hanover Re Africa, says the risk of earthquakes is bigger in Cape Town than in Johannesburg, despite the earth movements triggered by deep mine activities in Gauteng. In 2005, earth movement in Stilfontein measured 5.3 on the Richter scale and killed two mineworkers. A government report blamed mining activities.
Moses says there is a fault line which starts in the sea about 9km from the Koeberg reactor and then runs through Milnerton and the Cape Flats.
Apparently SA's first big earthquake happened in 1620 close to Robben Island, and was witnessed by a ship passing through. The next major one was in December 1809 in Milnerton, and measured an estimated 6.1 on the Richter scale.
No to nuclear
According to Fourie, some of the other riskiest areas are St Lucia in KwaZulu-Natal (6.0-6.5 in 1932), Koffiefontein in the Free State (6.0 in 1912) and Ceres and Tulbagh (6.1-6.3 in 1969).
Insurance coverage for earthquakes is usually part of even the most basic short-term insurance packages. However, some insurers won't pay for damage caused by mining activities. People who live in mining centres, and particularly those in Gauteng, should make sure they are covered.
Most policies will offer cover against sinkholes and landslides, but this can be limited with specific exclusions – like earthquakes caused by mining, says Lizette Erasmus, marketing manager at Integrisure. Damage to your outside buildings, swimming pool, tennis courts and garden can also be excluded.
Comprehensive car insurance will usually provide full cover for any damage or losses due to an earthquake.
When it comes to tsunamis, your policy will usually cover storm damage. But owners of properties on the water's edge may face exclusions. If flood or water damage is a regular occurrence your nsurer may refuse to cover such damage, or demand a higher excess payment.
Nuclear damage is excluded in all local policies, says Erasmus.
- Sake24
For business news in Afrikaans, go to Sake24.com.
