Risks in rent­ing your house to soc­cer fans

Weekend Argus (Saturday Edition) - - PROPERTY -

HO­TEL, BED and break­fast (B&B) and home own­ers who are con­sid­er­ing pro­vid­ing ac­com­mo­da­tion for the 400 000 vis­i­tors ex­pected dur­ing the World Cup are open­ing them­selves up to huge po­ten­tial risks by fail­ing to take out ap­pro­pri­ate in­sur­ance cover.

Clint Harker, head of in­sur­ance at Pin­ion In­sur­ance Bro­kers, an Aon Group Com­pany, says South Africans should not as­sume they are cov­ered for in­ci­dents and events that oc­cur while rent­ing out their homes to vis­it­ing soc­cer fans.

“Clients face the real pos­si­bil­ity of be­ing sued by for­eign vis­i­tors and not hav­ing any cover to meet the en­su­ing ex­penses,” he says.

Re­cently, a client of his was sued by an Amer­i­can fam­ily for well over R20 mil­lion due to a li­a­bil­ity claim against a South African ci­ti­zen.

Harker says it is pos­si­ble for peo­ple plan­ning to rent out their prop­er­ties to ob­tain li­a­bil­ity cover that is not nor­mally avail­able on tra­di­tional per­sonal lines poli­cies.

Harker says B&Bs and pri­vate in­di­vid­u­als could ben­e­fit by spec­i­fy­ing their cover for the du­ra­tion of the tour­na­ment. “It is im­por­tant to be aware of how costly dis­rup­tions to ser­vices due to un­fore­seen cir­cum­stances could be dur­ing the four weeks of the tour­na­ment,” he says.

“Own­ers of ho­tels and B&Bs should as­sess whether they are cov­ered for loss of rev­enue due to can­cel­la­tions, staff stay-aways and fail­ure of es­sen­tial equip­ment such as air-con­di­tion­ers or heaters.

“Ar­rang­ing cover for this will be par­tic­u­larly im­por­tant for B&Bs and ho­tels in con­gested ar­eas of Cape Town and Jo­han­nes­burg; es­pe­cially ar­eas close to the soc­cer sta­dia and fan parks, where park­ing is likely to cause con­ges­tion.”

Noise pol­lu­tion is also likely to be a prob­lem for es­tab­lish­ments in ar­eas close to ma­jor events. Some in­sur­ance poli­cies in­clude cover for noise pol­lu­tion from the premises within 500m of the es­tab­lish­ment. Th­ese poli­cies may in­clude cover for the death or hos­pi­tal­i­sa­tion of “key mem­bers” of a busi­ness.

Harker rec­om­mends that any­one of­fer­ing ac­com­mo­da­tion dur­ing the World Cup should check with their bro­kers whether their poli­cies will cover them for all even­tu­al­i­ties.

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