Wise words for the silly season

Given crime and erratic electricity supply Gari Dombo, Managing Director of Alexander Forbes Insurance, advises holiday makers to have a friend or family member check your house regularly while you are away this holiday season.

Power failures, surgesand load shedding resulting in defrosting fridges and deep freezes have potentially far reaching insurance implications. Similarly, burglar alarms disabled by flat batteries pose yet more insurance pitfalls unless policies are properly understood.

For example, says, Dombo, “If the contents of your fridge or feezer spoil due to accidental interruption of your electricity supply, any damage causedshouldbe covered by your standard Priceless or Envoy policies up to the sum insured.”

“If, however, the power is purposely withheld by the public authorities, because, for example, you did not pay your bill, no cover will be provided.”

If, however, the power interruption is caused by deliberate human action,like load shedding, then your insurer is not responsible. Instead, the person or company causing the power interruption is responsible.

Adds Dombo, “Since load shedding is a deliberate human action, the local electricity supply company could, theoretically, beheld responsible for any damage caused to the contents of your fridge or freezer.”

Dombo, however, advises policy holders to pose this question to their local public authority as these may have different interpretations or legal disclaimers – and, certainly, there is no precedent to indicate that local electricity supply utilities will accept this liability.

Instead, Dombo advises that, “If your current policy does not cover power surge it is recommended that you renew your cover to include this increasingly important element.”

In another scenario, while you are away there is a three day long power failure and the battery of your house alarm runs down. The house is burgled but the alarm does not go off because the battery is flat.

In this instance, Dombo explains, “Since the power failure that caused your alarm battery to fail was beyond the policy holders control, Alexander Forbes would meet this claim. The reason your battery failed was the power failure. The flat battery cannot in any way be attributed to negligence on the part of the policy holder.”

While in this case Alexander Forbes would meet the claim, Dombo cautions that, “The question of liability is one that policy holders need to raise with their own insurers as the requirements regarding alarms vary considerably between the different insurance products available on the market.”

Hence before you head off on holiday this year it is critical to discuss with your insurance expert the various scenarios posed by power failures, surges,load shedding and failed alarm systems and burglaries. Knowing that you are covered for all the situations of loss that can arise from these events will give you the peace of mind that you deserve while on holiday.

That said, concludes Dombo, “The most simple and effective precaution that you can take while away is to have someone stay in your home or at least check up regularly to make sure the electricity supply is not interrupted and that you are not burgled.”