Delayed property maintenance could void your insurance policy
Media Release | Actuarial Society of South Africa | 7 July 2025
If you cannot remember when you last had your roof waterproofed, your electric fence checked, or if you ignored the advice of your auto repair centre to replace the brakes of your car, you could be voiding your short-term insurance cover.
John Wessels , actuary and member of the Short-term Insurance Committee of the Actuarial Society of South Africa (ASSA), says all short-term insurance policies have “general duty of care” clauses that oblige policyholders to manage preventable risks by safeguarding and maintaining insured property. The aim, says Wessels, is to maintain fair and affordable insurance coverage.
“Your building, household and vehicle insurance will therefore exclude cover for damage or loss caused as a result of poor maintenance or negligence. Known as exclusions, these clauses are often overlooked and misunderstood by policyholders.”
Wessels explains that exclusion clauses commonly require policyholders to maintain the insured property in a manner that prevents damage and avoid actions that increase the risk of loss. However, because exclusion clauses are often misunderstood, when an insurer rejects a claim citing an exclusion clause, consumers frequently feel that they are being unfairly treated.
Wessels says short-term insurers exist to pay honest claims resulting from sudden and unforeseen risks. He adds that if insurers did not apply exclusion clauses and settled claims for damage or loss caused by negligence or a lack of care, short-term insurance premiums would soon be unaffordable, and policyholders who take care of their property would be subsidising those who do not.
Claims rejected
The biggest reason for claims being rejected under homeowners’ insurance in 2024 was due to exclusions related to wear and tear, gradual deterioration, and a lack of maintenance, according to the 2024 Annual Report of the National Financial Ombud (NFO) Scheme.
The report details the case of a homeowner who submitted a claim for water damage caused by a storm. The insurer rejected the claim after an inspection of the roof showed that it was in poor condition and had not been maintained. The homeowner complained to the NFO, but could not prove proper maintenance of the roof, and the non-life insurance division adjudicator dismissed the complaint.
Wessels says it is not surprising that in 2024, rejected claims for loss or damage due to acts of nature contributed 40% of complaints submitted to the NFO.
Acts of nature and duty of care
Wessels says short-term insurers usually receive high volumes of claims following acts of nature. He adds that, upon assessment by insurers, it is often found that weather-related damage could have been prevented had the damaged property been properly maintained or if proper risk avoidance measures had been followed. Common examples include water damage caused by roofs that were not adequately maintained, collapsed boundary walls that had been in desperate need of repair for years, and swimming pools that cracked due to neglect
And, says Wessels, if you decide to try your luck crossing a river in flood with your new off-road vehicle, despite warnings from disaster management not to attempt this, your insurer is also unlikely to cover the cost of a new car.
Wessels also cautions homeowners to ensure that home security is maintained and functional. “If your home is burgled and the claims assessor finds that access was gained to your home because the electric fence was not working, the security cameras were no longer monitored, or that you had not replaced a broken security gate lock, your claim will likely be rejected.”
He says the same “general duty of care” applies to vehicle owners. For example, the auto repair centre advised that the brakes on your car were worn entirely and needed to be replaced, but due to a tight budget, you decided to delay this costly repair until later in the year. A month later, you are involved in an accident, and the claims assessor finds that worn brakes prevented you from stopping in time, which could have helped you avoid the accident. Your claim is declined, and suddenly, you are faced with a much bigger financial disaster.
Understanding exclusions and their implications
Wessels notes that some short-term insurers are focused on creating greater awareness among policyholders of their “general duty of care” responsibility by highlighting exclusions in the policy document and explaining them. He urges policyholders to open these documents, usually emailed together with the policy renewal notice, and to read them.
If you have not heard from your short-term insurer for a while, Wessels advises that you make an appointment with your broker or insurance company and ask them to explain the exclusions and their implications for you.
Ends
To set up interviews, please contact:
Lucienne Fild | Independent Communications Consultant | 082 567 1533 | lucienne@fild.co
Issued on behalf of:
John Wessels | Actuarial Society of South Africa (ASSA)
The Actuarial Society of South Africa is the professional organisation for actuaries and actuarial students in South Africa. The vision of the Actuarial Society is an actuarial profession of substance and stature, serving, and valued by, our communities as a primary source of authoritative advice and thought leadership in the understanding, modelling and management of financial and other measurable risks.