Does your security match your theft policy

A burglary claim on a householder?s insurance policy may be rejected if the home security does not meet the insurer?s minimum requirements.

Since the proposal form usually lists your insurers? minimum security requirements, consumers should read it carefully to see if the arrangements they have in their home comply.

It is important that consumers understand their obligations since insurers rely on the security information clients provide in the proposal form to rate the risk and calculate the premium.

The security obligations are also stated in the policy document.

As a general rule, most insurers? security requirements include some or all of the below:

? burglar bars on all opening and louvre-type windows;

? security gates on all sliding doors, or at least a second lock that is either a key operated locking bolt or locking pin, fitted at a 90 degree angle to the existing door lock;

? an alarm system linked to a 24 hour control room with an armed reaction unit;

? security gates in front of all opening external doors.

In practice, however, there are no fixed rules.

Be open and honest with the insurer so the risk can be underwritten correctly and under or over insurance is avoided.

Insurers? will make decisions on the assessment of risk, based on information provided by clients. Some insurers might even be willing to relax certain requirements if others have compensated for them.

The duty to disclose accurately does not end with the proposal form but continue as long as the policy exists. This means that the insurer should be informed of any change as it will affect the terms of cover.

For example, if builders are appointed at your property or complex, the insurer should be alerted to the additional risk. Depending on how well the builders are supervised, the insurer will decide whether or not to tighten terms or increase premiums according to the changed nature of the risk.

In the case of builders most insurers would exclude or limit theft cover to forcible and violent entry for the duration of the building operations if the restriction was not already built into the policy. In this case, policy holders should ensure that valuables are locked away safely to avoid petty theft as this will not be covered until the builders depart.

Keeping quiet and not informing the insurer of even temporary changes may result in claims being rejected.

To avoid claims being rejected consumers must keep a copy of the proposal forms so that it can be checked from time to time to identify what new information should be disclosed and what changes have occurred.

If the insurer accepts a risk without any security requirement and burglars gain entrance through unprotected areas, the claim will in all likelihood be accepted.

Where an alarm is part of a home?s security, it should be kept in proper working order and armed whenever the premises are left unoccupied or unattended. Forgetting to activate the alarm or leaving the home in the care of people who don?t know how to operate it may result in the claim being rejected.

If, on the other hand, a signal fails to go through to the armed response company but it can be proved that the alarm was armed, an insurer is likely to be sympathetic to a claim. Such critical proof is usually stored in the alarm key pad. If the key pad can?t produce an activation report, consumers should get an armed response company to install one.

In short, taking all the steps required to ensure that the premises comply with the insurer?s security requirements is the best way to avoid disappointment at the claims stage.

For more information contact Alexander Forbes at 061 293 7000.