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News from Aon: Implications of Power

Outages on Your Household Insurance

The writing is certainly on the wall as South Africa gears itself for potential load shedding during the
approaching winter months. While this has many implications, one of the most concerning is the fact
that power outages compromise safety and security. Should you experience a burglary or robbery during
this time, you could find yourself holding the short end of the stick if your insurance coverage terms don’t
specifically provide for circumstances that are beyond your control.

According to Mandy Barrett of insurance brokerage and risk advisors, Aon South Africa, this may well
be the case on some insurance programmes, especially where the policyholder has not interrogated
the implications of the terms and conditions of their cover. “This is where the true value of having a
professional broker in your corner comes to bear, making sure that you are not compromised or prejudiced
by unreasonable limitations on the cover,” says Mandy.

It’s essential to check with your insurer exactly what your policy covers you for should you have a claim
as a result of a power failure. “Granted, insurers will provide specific conditions to their cover when it
comes to security measures for your home or property, and more specifically regarding the alarm system.
For example, the alarm will need to be in full working order and in many instances, linked to an armed
response company,” explains Mandy.

“Your policy may very well specify that if your home is left unattended, that the alarm has to be armed.
Under normal circumstances, if these conditions are not adhered to and a burglary takes place, the client
may be subjected to additional compulsory excess payments, claim rejection or the settlement being
dramatically reduced. But the key term here is ‘normal circumstances’. This condition should not be
applicable if the alarm malfunctions due to a defect or circumstances unknown or beyond the control of the
insured – such as an extended power outage,” concludes Mandy.

Call in the experts partner with Aon today:

0860 100 404
SMS Professional to 31762 and we will call you back*
quoteme@aon.co.za
aon.co.za

#AskAon

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