SA’s wild weather sees surge in household insurance claims

Changing weather patterns have resulted in more household insurance claims for wind, water and fire damage.

This is according to Lizo Mnguni, spokesperson for Old Mutual Insure.

“La Niña, a global weather phenomenon, has wreaked havoc across the country, bringing higher than expected rainfall and floods to Gauteng, central SA, KwaZulu-Natal and other parts of the country. It is expected to continue bringing disruptive rain for the rest of the summer and into autumn.

“A prolonged wetter period means insurers and homeowners are wondering how to best manage risk in 2022.

“While La Niña has been cited as a global weather phenomenon, it is happening against the backdrop of climate change, which is touted to bring catastrophic consequences, including increased levels of drought, heightened risk of mudslides, and exacerbated fire season.

“This can lead to higher and more volatile weather-related insurance claims.

“The impact of changing weather patterns like La Niña or El Niño has seen a steady rise in the number and quantum of household claims paid by Old Mutual Insure in recent times as homeowners across the country dealt with fire, wind and water damage,” said Mnguni.

He said homeowners can insure themselves against the increased risk.

However, he believes they should work with insurance companies to reduce their risk, “firstly by familiarising themselves with the dangers associated with changing weather patterns and extreme weather events, and then by taking action to help mitigate the worst effects of the La Niña conditions on their policy provisions, buildings and contents.”

Mnguni said it is important to ensure there is adequate cover for floods, which can sometimes be excluded by wording in policy documents.

“Assess and update the sum insured if it is not enough, because being underinsured if there is increased risk is a major reason many policyholders end up being out of pocket.”

He said it is important to review the sum insured in conjunction with limits for the removal of debris because heavy rainfall could result in localised flooding, and wind may result in damage to homes or buildings.

“Preparing for the worst will also help insurers keep premiums affordable without passing on the costs of climate change and extreme weather to homeowners.”

TimesLIVE