Clean up of St Francis fire impossible to ascertain

The huge fire that engulfed homes in St Francis Bay in the Eastern Cape was mostly extinguished by Monday morning but the clean-up is likely to take some time. The devastation caused by the fires will come at a huge cost for the entire insurance industry

Natasja Blok, Managing Director of Thatch Risk Acceptances (TRA) – an insurance underwriter, writing on behalf of Compass Insurance Company Limited – says that while she cannot estimate the total Rand impact at this stage, she notes that thatched homes in the area that TRA underwrites vary from between R1 million to R16 million. “We are already aware of 27 homes that we underwrite that have been affected – including a body corporate containing 8 homes. At this point, I would estimate the total number of homes affected at almost 80, but the situation is changing all the time.

“It will take some days before we have a clear idea of the full impact of the fire but we had loss adjustors there from 7am this morning to ensure that we can settle these claims as soon as possible. A large percentage of claims on thatched roof houses are fire related and a house can burn to the ground in ten minutes flat so it often ends up being a total loss. It should be noted that we can already do interim payments for our clients to assist them in acquiring some basic necessities.”

She says that there are two main residential areas in St Francis, one area that is totally thatched and another that is standard construction. She says, “We insure a lot of houses in the thatched residential section, which are obviously the most prone to fire damage. It’s essential for homeowners to have the correct insurance in place. For a total loss, we pay out the sum insured and with thatched roofed houses, there is often not much in the structure that can be retained. Fire claims are usually faster to pay out than flood claims, as with a fire you are pretty certain of what has happened.”

Blok says that the total insurance pay-out is likely to be considerable although she is not yet able to pinpoint an exact figure. “I am trying to get flights organised as soon as possible so that my Branch Manager, Morne Smit, and I can go and inspect the area and interact with our clients, as well as brokers and employees who have been working through the night to try and assure residents. We will settle the claims as quickly and painlessly as possible – there is no point in delaying the claim, especially with a shock like this.

“Thatch Risk Acceptances has significant financial backing, as it is insured by Compass Insurance Company Limited, which has an A+ claims paying ability rating from the Global Credit Rating Company (GCR). We aim to ensure that all pay-outs will be done as soon as possible to try and bring our clients back to their previous position, by increasing our cash flows as well as the agreed limits of what we could pay on our normal claims account.”

Blok says due to the fast burning nature of thatch, homeowners often have little time to save any precious belongings. “Losing one’s home and valuables in a fire is traumatic enough for any homeowner, but if they then discover that they were not correctly insured in terms of the value of their home and its contents, the agony is so much worse.”

In terms of future rebuilding, Blok says that there are various fire retardant treatments available in the market, which are very effective in delaying the spread of a fire over the entire thatch roof.She clarifies, “It must be noted, though, that in an extreme case like the one we experienced now in St Francis with the high winds, even these treatments might not be sufficient to delay the spread of fire.”

Blok adds, “Some of these products need to be introduced during the construction phase when the roof is being erected and in other cases the thatch can be treated on existing structures.”

She also recommends the professional installation and maintenance of Drencher Systems on the ridge capping, which can be activated automatically or manually. “Ultimately, if there is a raging fire in your vicinity, the best advice is to drench the roof with water.If the roof is wet, it will

significantly reduce the risk of the thatch catching alight. Again, however, under extreme circumstances with high winds this will reduce the effectiveness,” she concludes.