Fire insurance

[ians]

This going to be interesting, with all the "natural disasters" ,big rains etc, claims on daily baisis, i wonder if the insurance companies are going to try pull all the small print clauses out the hat... http://www.news24.com/SouthAfrica/Ne...essed-20121112

On the news tonight, there was talk that it might not have been a spark from a braai and could have been caused by an electrical fault.

Now here is the big question if it was an electrical fault caused by an illegal connection of sorts, could the insurance companies get out of paying the entire claim, if it is the same insurance company i am sure they are going to do a thorough investigation, if you know what i mean. I did notice there are already insurance underwritters commenting in the article.

[Phil Cooper]

Hi Ian

If it was caused by illegal wiring, and it can be shown that the owner of the said property KNEW of it, the Insurers could repudiate HIS claim.

It will not, however, affect the claims of all the other homeowners at all. They will be paid out.

HOWEVER - we are looking at around R500-m here, and over R100-m for the hail recently - so we may see rates affected from renewal of policies next year.

[Phil Cooper]

Latest indications are that claims now exceed R600,000,000 and that is purely the material damage portion.

The loss of rent / temporary accommodation will add a lot to that!

[Dave A]

Ouch! That was one expensive braai

[Phil Cooper]

This is now officially the biggest disaster to hit the SA Insurance industry.

[Dave A]

I was surprised to see the last record claim was set by the loose bolt in the Koeberg reactor incident. That was quite some Oops!

[Phil Cooper]

All caused by a careless nut!