South Africa has been suffering from a water shortage and drought in various regions, with Cape Town experiencing the worst drought ever recorded in history. Although Day Zero has been extended, it remains a concern that some areas are running out of water – fast!

It is stating the obvious, but we will be remiss not to remind readers that is is imperative for everyone to take the necessary precautions to minimise risk and dangers.

Courtesy of Santam, we bring you some important information with regard to insurance risks related to the drought and water restrictions:

In terms of insurance claims relating to the drought and resulting from water restrictions put in place by the authorities in Cape Town and the Western Cape, the impact will largely depend on the type(s) of cover provided. In general, drought, water rationing and the withholding of water by the authorities are not insurable risks or perils and therefore are not covered. The exception to this is Multi-Peril Crop Insurance which insurers extend to farmers in limited amounts. This is normally packaged with hail insurance.

Where clients would typically be covered is in the event of secondary impacts, for example in the case of fire or flood damage. It should, however, be noted that clients should continue to maintain protective measures against such risks, especially where these are a condition of cover.

Santam therefore recommends that commercial clients ensure that, if applicable to them, they have:

• Implemented fire detection and/or sprinkler systems updates and upgrades (including booster pumps and water tanks), to ensure cover in the event of fire,
• Electrical connections/plumbing are completed and approved by registered professionals,
• Firefighting equipment is assessed and tested.

Personal clients need to be aware of the following:

• That in the event Day Zero arrives; you ensure that all taps are turned off in households. This will prevent potential flooding when municipal water is turned on again.
• Consult with a pool expert and get advice on whether it is advisable to empty your pool. The emptying of pools can compromise your structural integrity, causing them to collapse. Should this happen, it probably would not be covered by most insurance companies. The best thing to do is to ensure households use a pool cover to minimise water evaporation.
• Switch off your geyser. We have consulted with the relevant geyser experts who have advised us that the onset of Day Zero should have no effect on a South African National Standards-compliant geyser. It is, however, more prudent to switch the geyser off.
  (Source: Santam)

We encourage everyone to do their part in eliminating insurance risks associated with the water crisis, and to ensure that you are not underinsured. Please feel free to contact us if you have any questions. We look forward to hearing from you.