In October 2018, the revised national building regulations relating to minimum requirements for geyser installations were implemented. Following this, we have found instances where clients are experiencing some complications in replacing existing geyser installations. Generally, property owners find that the initially allocated space for their existing geyser installation is insufficient to accommodate the new class-B geysers. This tends to lead to additional costs to alter their property so the new geyser can be accommodated.
While property insurers generally do not provide cover for improvement (see related article), most insures are reviewing their geyser insurance and making a concerted effort to adapt their existing cover options to accommodate the changes in legislation. It is important that we do not lose sight of the basis on which geyser insurance cover is provided by insurers.
Specialist insurance policies
All specialist property insurance policies provide limited cover for the replacement or repair of geyser installations. These limits will be listed in the policy schedule and may vary from one insurer to another, according to the type or capacity of geyser. Cover limits are determined by the insurer in line with reasonable, market-related costs and represent the amount of indemnification that the insurer is willing to offer at an agreed premium.
In the event of a claim, compensation will be made in accordance with the relevant indemnity limit reflected in the policy. Where a geyser installation requires a higher limit of indemnity, it is up to the property owner to request increased cover from the insurer to ensure sufficient indemnification. In addition to the new B-Class geysers, other installations that may require increased indemnity limits include solar geysers and geysers installed in cupboards or other less accessible locations. (see related article). Payment of an additional premium should be expected.
In view of the above, it is vital that all property owners are made aware of the cover limits to ensure they are afforded the option to increase their cover. They will then be sufficiently informed to select a contractor who quotes within the limits in the event of a claim.
Author: Bruce Gibson
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