Alarms and your Insurance Policy
The mere existence of an alarm does not always mean that your theft losses following break-in are covered in terms of your insurance contract.
The Position
Recent rejected theft claims have underlined the need for an expert, proficient broker to interpret and guide policyholders in complying with their policy contract terms. Virtually all policies offering theft cover will contain Alarm Warranties which place onerous duties on you at claim stage, for example:
- Prove Your Loss. It is your duty to prove that the alarm was set whenever the premises are closed
- Open & Close Monitoring. Some insurers warrant "Open & Close Monitoring" in terms of their policy contract. This essentially means that your alarm company must keep record of when your alarm is set on close of business and when it is deactivated on opening of business. Chadwicks strongly recommends that you avail yourself of this functionality, regardless of whether it is warranted in your policy or not, as all insurance policies will require you to prove that the alarm was set in the event of a loss. Policy compliance is then made simple as "Open & Close Monitoring" will show whether the alarm was actually set or not
- Test Your Alarm. Your alarm should be tested at regular intervals to ensure that it is fully functional at all times
- Armed Response. The services of an armed reaction unit to react to alarm activations given that the response of the police service is not reliable in today's crime ridden South Africa
Our Solution
In short, it is vital that you are aware of the terms and conditions of your insurance contract. For total peace of mind, contact Chadwicks for expert advice with regard to your theft risk management and insurance practice.
