Modern risks have changed - but has your insurance?

The way we live our lives today has changed dramatically from 20 years ago. The technology we use, climate change and our efforts to mitigate it, and how and where we live and work have all altered our risk. But has short-term insurance kept pace, and is your policy covering you correctly for these modern risks?

In South Africa, loadshedding may be a thing of the past (for now) but years of power challenges spurred consumers to fit solar panels, inverters and batteries to their homes. Outdoor electrical lights were replaced with solar lights, generators purchased for quick fixes and electrical geysers replaced with gas-powered systems.

But each of these represents a potential hazard if not installed correctly and maintained. Insurance policies do cover alternative power supplies, but have specific requirements that must be met to ensure coverage.

Now is a good time to check what your policy says about these energy sources and that your installations are compliant.

The same can be said for alternative water sources. With droughts and aging infrastructure affecting the water supply and quality in many South African towns, homeowners have installed rainwater tanks and even boreholes to secure their fresh water supply.

These additions to houses also need to be installed correctly, as leaking or burst pipes, and the water damage caused as a result, will not be covered under your insurance policy if the installation was not done correctly.

In the wake of the Covid-19 pandemic, many South Africans found themselves working from home. This gave rise to home offices capable of meeting the requirements of remote working.

Fully equipped residential offices require the right kind of cover: equipment and office furniture must be insured, files and sensitive business information must be securely stored, and electrical connections must be correctly installed. Home fires caused as a result of overloaded plug sockets in a home office, for instance, are not covered.

Not all policies cover complete home offices (beyond a laptop and printer) so check your policy and the specific compliance requirements if your office space is more extensive or has specialised equipment.

Connected to this is the flourishing trend of side hustles. South Africans are doing everything from making products and selling second hand clothing to baking, hosting tuck shops and reselling items from Chinese e-commerce stores.

It's unlikely that your current insurance policy covers this, so you need to carefully check your policy or contact your broker if you're not certain of your coverage or compliance.

There are strict rules governing preparing and selling food, and items bought in bulk that have to be stored for long periods of time (i.e. potential fire hazards).

Finally, if you use part of your home for Airbnb income, your insurance must cover this, particularly your property and contents against damage. You can also look into insurance covering liability, unpaid stays, booking cancellation and business interruption.

Our risks have changed and insurance along with it. The onus is on you to ensure your policies have too.