By: Sharon Paterson, CEO at Infiniti Insurance Limited

As summer approaches, there is a higher probability for the summer rainfall areas in the country, to experience flooding or hailstorms. Property owners need to be more aware of the right coverage to insure against weather-related losses. In these circumstances, clients should also seek the advice of an insurance broker with expertise in the physical risk associated with natural catastrophes.

“Having a broker can help homeowners manage their risk exposure by advising them on investing in long-term preventative measures to mitigate and reduce the impact of catastrophes.  A catastrophe is determined by the rand value of claims caused by one event or weather pattern for usually around three days across more than one area and impacting more than one client.

“The short-term insurance industry is currently confronted with a high risk of flooding as these events are becoming more frequent,” says Sharon Paterson, CEO at Infiniti Insurance Limited.

“Flooding now needs to be regarded as part of what we refer to as attritional losses. These are losses that we must expect to have and that we build into our rating structures,” she adds.

The biggest challenge we are facing as the insurance industry, is to strike a balance between charging a reasonable premium for the cover provided and underwriting risk so as not to prejudice existing clients but not to sign up new clients in areas that are highly likely to be flooded. It can be summed up as “managing our risks.”

With climate-related disasters becoming common every year, homeowners must understand the threats their properties face and how to mitigate them.

Here are five tips on how to manage flooding risks for your home or business property.

1.   Maintain your property regularly and pay particular attention to your roof. A small leak can result in a water build-up that can result in ceiling collapse and water damage to contents.   If your property is regularly damaged because it has not been properly maintained, you might well find that no insurer will provide you with insurance or that a claim as a direct result of the poor maintenance will be excluded from cover.  It also very important to make sure that the gutters are regularly cleaned of debris, particularly if you have lovely leafy surroundings.

2.   Make sure that any retaining walls have been correctly constructed.  If a retaining wall collapses, this can cause significant water damage to your home.  Retaining walls should be constructed to allow water to flow through. The same applies to perimeter walls. The perimeter wall is often a significant problem as in many cases the wall is not constructed properly.

3.   Plant indigenous vegetation that is naturally adapted to your region's climate and soil conditions. Indigenous plants have deep roots that help absorb and retain rainwater, reducing runoff and erosion.

4.   Check the area before you buy or build. We used to look at the 50-year flood line. Now we have significant events that are rapidly changing flood lines.  If the area had been flooded in the past, it is more likely to be flooded again.

5.   There were many discussions on the KwaZulu-Natal floods regarding infrastructure failure – make sure your draining systems are clear, and your gutters are clean.

Paterson says in some cases, clients are not aware of the risks that they face or how best to mitigate those risks.  “This is when the role of brokers becomes more critical than ever in educating clients to assess the risks and put mitigating steps in place and to update their cover and to ensure that they have the policy best suited to their particular risk profile. The broker must provide regular updates and advice on any adjustments to their cover as new risks emerge,” she concludes.