that you will take with you when you move is covered under the contents section , whereas everything that stays behind must be covered under the buildings section . Insure these installations under the buildings policy . This is important because many building ’ s policies give more limited cover for things like power surge and typically offer no cover for accidental damage .
It is also important that , due to the cost of these installations , to ensure that the buildings sum insured is adjusted to allow for the cost of replacing these backup systems with the same new system , to avoid a reduction in a claims payout due to underinsurance . be insured under the contents section , especially in cases where a policyholder may rent the property and have the backup system installed at their own cost . Like buildings cover , it is again important that the sum insured includes the cost of a new replacement system .
Not all policies are created equal . Most insurance policies give cover on a specified perils basis with limited cover for power surge and accidental damages . It is important that policyholders check with their brokers or insurers whether they have full cover in the event of loss or damage to their installations .
Some specialist insurers allow for backup power systems to
About the Author
Tarina Vlok is the Managing
Director at Elite Risk Acceptances , a high-net-worth insurer and
subsidiary of Old Mutual Insure