The impact of remote work on home and car insurance in South Africa

While remote and hybrid work arrangements have recently started to decline as the return-to-office trend has gained momentum around the globe, many companies continue to embrace these models to attract and retain top talent. The working-from-home option does impact how South Africans use their homes and vehicles and must be considered when it comes to protecting these important assets.

Many people embrace the convenience of home offices, but only a few may realise that this work-life-balance choice (or opportunity, as some companies do not allow this) could have significant implications for their insurance policies.

South Africans should review their home and car insurance to ensure they remain adequately covered if they opt to work from the comfort of their personal space.

Home insurance implications

Integrating workspaces into personal residences brings about certain dynamics to home usage. Many homeowners have invested in expensive office equipment, increased their reliance on home internet, and even started running businesses from their residences. However, failing to inform insurers about these changes could lead to gaps in coverage or even rejected claims in some cases.

Most standard home insurance policies are structured around personal use of the home. Whether you’re running a business or working remotely, it’s crucial to declare to your insurer if a portion of your home is being used for business purposes. Not doing so could result in your claims being declined or certain losses not being covered.

For instance, home offices often have valuable equipment like computers and printers, as well as a backup supply of routers, which many people installed when loadshedding was at its worst. Other items could include fridges and storage, depending on the business activities. These products may require extra coverage beyond a standard insurance policy and would certainly need to be considered under contents coverage. Additionally, handling sensitive data from home can expose you to cyber threats, yet most home insurance policies do not include cybersecurity.

Car insurance savings for remote workers

The impact of remote work extends beyond home insurance. Fewer commutes and reduced mileage could translate to lower car insurance premiums. Insurers often assess risk based on driving frequency, and people who need to drive to the office less may qualify for reduced premiums. But it’s also important to ensure sufficient coverage for when you are on the move.

Consumers should take the time to chat to their insurer and update their policies to reflect their current lifestyles. Those who do not drive to work daily should check with their insurer to see if they qualify for mileage-based discounts or policy adjustments, and if your personal vehicle is being used for business purposes, such as for deliveries, check in too to ensure coverage.

As remote working continues to be a prevalent aspect of the South African work culture, it is important for people to proactively assess and update their insurance policies. Understanding the terms and conditions of cover can prevent potential financial setbacks and ensure sustained protection.  

The best approach is to consult with an insurance professional to tailor coverage to your specific needs, ensuring all aspects of your work-from-home lifestyle are adequately safeguarded.

* Nxumalo is the executive head of people and transformation at Miway.

PERSONAL FINANCE