Real Estate Investor October 2022 | Page 49

The top two other reasons for claim rejection include incorrect installation or the use of unsuitable materials , usually called defective workmanship in insurance contracts , as well as wear and tear exclusions . The lifespan of these systems is limited and oftentimes components rusted or decayed due to continued use , which can be the reason the system stopped working .
Lithium-ion batteries pose a fire risk , which if triggered , can be extremely difficult to extinguish . In the absence of updated regulations , policyholders must ensure that the installation is done by a reputable contractor , who does the installation in accordance with the manufacturer ’ s instructions . If an investigator or assessor finds that the cause of a fire was due to incorrect installation , the insurer
SA Real Estate Investor Magazine OCT 2022 49