Unexpected Loss? Not Anymore with Portable Possessions Insurance

When it comes to Home Insurance for your contents, many South African homeowners focus on theft. This is understandable, given South Africa's high crime rate. Less frequently reported is the impact of weather-related disasters, which in some instances present a greater risk to homeowners.

Budget Insurance offers a solution designed to protect the belongings of anyone living in fire and storm-prone areas. Let's look at when fire and storm damage insurance cover might be a good choice for homeowners.

How fire, storm and other events can pose risks

Since 2022, severe storms have resulted in significant property damage and losses in the Western Cape, Eastern Cape, and KwaZulu-Natal. These, along with devastating wildfires in the Western and Southern Cape, are not unusual. In the first two decades of the 21st century, South Africa has seen a 57% increase in weather-related disasters1 compared to the last two decades of the 20th century. Since 1980, floods, storms, and wildfires have together caused damages totalling more than R50 billion. However, fires and adverse weather pose other risks to your possessions beyond the obvious.

Storm damage

In the Western and Eastern Cape, severe storms are common2 during winter. Other areas in South Africa endure fierce thunderstorms and torrential rain following different types of weather fronts and tropical storms. Regardless of cause, strong winds, heavy rain, and hailstones can all damage roofs, break windows, and collapse walls. While structural property damage would be covered by Building Insurance, without storm damage insurance for your home contents, any damage to your furniture, clothing and other belongings would not be covered.

Fire damage

Damage from flames is not the only risk presented by fires. There is also a high risk of smoke and water damage. Consider Susan, who lives in an urban expansion that is still being developed. A fire races through an undeveloped field behind her home. Emergency services extinguish the fire before it reaches her property. But the direction of the wind has left most of her soft furnishings smelling of smoke and smudged with soot. Even though nothing was burned, she can replace smoke damaged items thanks to her Fire Insurance.

Natural disasters

Though less common than storms and fires, damage from natural disasters such as earthquakes and tornadoes has been recorded in urban areas in South Africa. In 1990, a tornado in Welkom caused more than R230 million worth of damage3, while a 1999 tornado in the Eastern Cape left 95% of residents in several towns homeless. Then let’s not forget the tornado and storm events that devastated several parts of the country in June 2024.

Falling trees

Falling trees and branches are a common occurrence with extreme weather. Even if they don't collapse a wall or damage the roof of your home, they can smash windows allowing rain to ruin personal belongings. The right Building Insurance will ensure the windows are repaired and the fallen tree is cleared away. But it won't cover the cost to repair or replace your possessions.

Explosions, burst geysers, and other such events

With Fire and Storm Home Contents Insurance, your belongings are also covered against several man-made hazards. From damage caused by burst geysers and plumbing failures, to gas explosions, and power surges. And while lightning strikes and storm damage to power lines often result in power surges, they can also be caused by electricity infrastructure failures and planned outages. All of which would be covered by your Home Insurance for your contents.

As a homeowner, understanding the full range of potential threats ensures that your Home Insurance for your contents protects your valuables against a wide range of risks.

Is Fire and Storm Only Home Contents Insurance enough?

Choosing the right insurance coverage depends on a wide range of factors, some of which can be specific to your situation. Fire and Storm Only Home Insurance can be an excellent option for many, but it's essential to evaluate whether it meets your needs. Here are key considerations to help you decide if Storm and Fire Insurance is sufficient for your home and belongings:

• Evaluate risks: If fire or storms are your primary concerns, this cover might be sufficient. This ensures that your essential belongings are covered against loss or damage without paying for unnecessary extras.

• Check property location: Properties in high-risk areas prone to natural disasters like floods, gale-force winds, and wildfires might benefit from additional coverage. Consider risks in relation to both historical records and developing trends. Assessing your home's vulnerability to various hazards will determine if additional insurance is necessary.

• Consider valuable items: Comprehensive Insurance might be more appropriate if your home is filled with high-value items such as artwork, antiques, and high-end electronics. Fire and Storm Only cover may not fully cover the loss or damage of valuable possessions. In addition to having valuation certificates for these items, high-value jewellery and watches also need to be stored in a secure, wall- or floor-mounted safe.

• Review policy exclusions: Wear and tear and theft are common exclusions for this type of Home Insurance for your contents. However, it is essential to consider all exclusions—such as fire damage to thatched-roof buildings—since additional policies might be needed to address exclusions.

• Consider your budget: Budget is always a factor when selecting insurance. Fire and Storm Only premiums are generally more affordable than comprehensive coverage, making it a practical option for families looking to protect their home contents while saving money. This approach allows you to secure essential protection, with the flexibility to upgrade later as your needs and financial situation evolve.

• Future-proofing: Think about potential future risks that might require broader coverage. As your family grows or your possessions increase in value, your insurance needs may change. Choosing a flexible policy now can save you from the hassle of switching coverage later.

• Assess replacement costs: Consider the cost of replacing your belongings in the event of damage or loss. Fire and Storm Only coverage typically requires home contents to be insured at replacement value. Since this can change over time, it is vital that you assess the replacement costs of your belongings periodically and update your cover. This will prevent you from being underinsured and only having part of a claim paid out.

Get a Home and Contents Insurance quote

If fire and storm damage are the most pressing risks to your possessions, Home Insurance Contents cover from Budget Insurance can be tailored to meet your needs. Explore your options and find the best coverage by getting a Home and Contents Insurance quote today. Our dedicated team is ready to answer any questions and help you make the best decision for your family. 

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Sources:

 1 Institute for Security Studies: https://issafrica.org/iss-today/urban-south-africa-is-ill-prepared-for-the-coming-climate-change-storm

2 News24: https://www.news24.com/fin24/climate_future/news/explainer-whats-behind-the-kzn-tornadoes-floods-and-snowfall-across-sa-20240605

3 The Citizen: https://www.citizen.co.za/northern-natal-news/news-headlines/2014/11/24/top-5-worst-tornadoes-south-african-history/

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.