At least five insurers will not pay for damages to houses caused by the recent earthquake that hit the country, according to a study released on Wednesday.
"We approached some of the major building insurance providers in SA and found that five out of 17 providers could reject claims relating to the Orkney incident if it was found to be linked to mining activities," Justmoney editor Angelique Ruzicka said.
A 5.5 magnitude earthquake struck the North West province on August 5, with the epicentre the mining town of Orkney. A 31-year-old man was killed and at least 34 miners were injured and more than 600 houses damaged.
Mandy Barrett of Aon SA pointed out that many South Africans were under-insured.
"Financial times are tough and many households have reduced their sums insured in a bid to try and cope with skyrocketing living costs. What most forget to factor into their decision is the fact that you will most likely have to replace all your household content and possibly even the entire structure of your home in the event of a catastrophic event," said Barrett.
Poor workmanship could also contribute to claims being rejected.
(SAPA)
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