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Home protection – electronic, physical, or a bit of both?

Electronic security is a key feature of South African home security. The first question usually asked when insuring home contents is whether private homes have an alarm system. Wayne Richards, Mutual & Federal group manager for Underwriting and Product Solutions says this would depend on the specific circumstances of the policyholder - for example, the suburb location, whether the individual is in a secure complex, nature and value of contents, other security measures in place, previous crime loss history of that area and that specific residence.

“The specific claims history of the particular individual would also play a key role in whether alarms are required. And all of the same principles would apply when considering whether various outbuildings should also be alarmed,” he elaborates.

The type of alarm system used by a homeowner could impact insurance premiums. “One that is linked through to an armed response company would be considered by an insurer as preferable to one that is not. If an insurer specifies that an alarm is required, this is usually accompanied by the instruction that it must be linked to a response company. Ideally, an alarm system should cover all entry points, and areas covered by beam sensors should not be obscured in a way that would allow intruders to go undetected.”

A homeowner or the advising broker should always disclose all additional security measures in place when requesting a quote as this could impact the premiums charged. Some customers like to supplement electronic security with physical deterrents such as burglar bars, and depending on specific circumstances, this may impact the premium.

Richards emphasises that an honest declaration of all security measures in place is key. “An insurer may send a surveyor to that property to confirm what is in place. Should there be a claim, an assessor will come around to inspect what security existed and what was breached. Insurance surveyors who go out to survey premises will also report back to underwriters about the nature of the security that is in place. If it is discovered that the required security measures have not been effected, and this is material to the circumstances of the claim, this could entitle an insurer to reject the claim or void the policy.”

An alarm should always be activated, and if it is not, or if certain areas have been bypassed eg, if animals are left in the house, a claim may be compromised. If there is a burglar alarm warranty on the policy, Richards says that failure to activate the system would entitle an insurer to reject the claim. If internal sensors are bypassed, this could mean the alarm system was not made fully operational and could entitle an insurer to reject the claim.

Alarms should always have back up batteries and these should always be fully charged. The alarm and its feed through to the response company should be tested on a regular basis. In some rare cases, a well maintained and tested alarm, for some unknown reason, may not activate when the house is intruded, or may not sound through to the response company. There may also be cases when a prolonged power failure depletes the back-up battery and the owner may not become aware of this if away for some period of time. In such cases, the insurer would investigate fully, perhaps even appointing an alarm specialist, and would try to accommodate a claim where there has been no fault on the part of the policyholder. Cognisance will usually be taken if the reasons for the non activation are beyond the insured’s control.

Richards says a combination of good physical measures (ie, security gates and burglar bars) together with an armed response linked alarm-system (installed and monitored by a reputable security company) is probably the best way to go. “However, the type and degree of security protection required will be determined by, but not necessarily limited to those underwriting considerations set out above.”

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