You’ve heard of it. You’ve seen it. You’re probably experiencing it right now – load shedding.

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Ah, load shedding, the bane of every South African citizen’s existence. 

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Second only to corruption and possibly crime. 

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Load shedding has unfortunately become common due to desperate attempts and a last-resort measure to prevent a total collapse of the electricity grid.

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When the system experiences electricity shortages, an imbalance in the network can cause the entire Eskom power grid to come crashing down.

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So, to prevent total pandemonium, rotating the load in a planned and controlled manner is implemented, ensuring the system remains stable.

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At the time of writing this article, South Africa is currently experiencing Stage 4 rolling blackouts ‘until further notice’.

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Continuous load shedding has devastated the South African economy, disrupted the daily lives of its people and, of course, crime.

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The increased frequency of load shedding has also increased the country’s crime rate.

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The following factors have helped to contribute to the increase in crime:

• Reduced visibility.
• Disruption of security systems.
• Unemployment and poverty.
• Frustration and anger.

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And to add insult to injury, South Africans have to also worry about electric surges after load shedding.

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When power is restored, the sudden influx of electricity can overwhelm electronic devices and other appliances, causing irreparable damage to both.

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Not only are one’s TVs, computers and fridges at risk, but power surges also pose a threat against data loss for businesses that rely on electronic records and are a safety hazard.

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Power surges can create safety hazards like fires or electrical shocks if damaged equipment is not adequately repaired or replaced.

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So, with all this mayhem in mind, what’s a desperate South African to do? 

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Is there any respite for us in these trying times, and where can one find a good insurance provider to protect them?

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Read on to avoid being left in the dark regarding what load shedding means for your property and possible insurance policies.

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Is There Insurance Coverage for Load Shedding?

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The power cuts have made many households unable to shoulder the burden of the complications of the lack of a consistent power supply.

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And to make matters worse, most policies don’t cover load shedding as an insurable risk in an insurance contract.

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Load shedding is a planned event announced in advance; therefore, it’s not considered an unforeseeable event that insurance can cover.

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However, the damage to home contents caused by power surges can be covered by insurers, but this depends on the individual product.

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Some insurers automatically include this cover, while others offer it as an optional add-on.

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That’s why it’s essential to review your policy or speak to your insurance provider to understand whether or not your household contents are covered for load shedding.

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If an insurance policy does cover damage caused by load shedding, it may also come with an additional premium. 

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But, if your policy doesn’t currently include coverage for load shedding, adding it may only result in a minor increase in your premiums. 

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This is because you’re likely to claim for your home contents that power surges have damaged, and as we all know, frequent claims hurt one’s risk profile, resulting in higher premiums.

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All-in-all, the coverage cost will depend on the specifics of your policy and the level of coverage you require.

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And What About Pineapple?

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We interrupt your regularly scheduled programme to deliver this very important message:

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According to our underwriters at Old Mutual Alternative Risk Transfer Insure Limited:

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“At peril level – a power surge (Secondary cause) is provided under the all-risk section whereby the proximate cause (Primary cause) of the power surge is as a result of lightning (can also result in fire, i.e. secondary cause)

However, there is no cover for power surges due to load shedding. 

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In this instance, the proximate cause of the loss/damage would be the load shedding, which isn’t covered under the policy.

With the above in mind, the proximate causes highlighted, lightning vs load shedding, is materially different. 

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In the first instance, lightning is considered an unforeseen and sudden event (where, at its core, what insurance covers), and the latter (load shedding) is a controlled, scheduled hazard which brings about loss/damage.

The sheer frequency and assumed continuation of load shedding sits outside the insurer’s risk appetite for what will be covered under the all-risk policy (also not priced for within the risk premium)

We do have cover for load shedding claims, but this is specific to contents and building insurance and is positioned as an ‘optional’ buy-up on the policy (accompanied with a condition of cover – requires the installation of a power surge protection device to the main DB board of the home).”

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Although load shedding is out of our hands, as a policyholder, there are steps that you can take to be proactive in protecting your home and its items.

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Surges can damage electrical equipment and appliances, and some insurance policies may include coverage for power surges; however, you’d be required to install surge protection devices to claim.

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Tips for Being Covered Against Load Shedding

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Since 2007, South Africans have been plagued by blackouts, so it’s safe to say that this isn’t our first rodeo. 

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With that said, not everyone may be conscious of the options available to them on how best to use their insurance policies to protect their electronics and devices.

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So, here are a few tips to assist you in your quest for maximum protection.

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Update the Policy

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You can contact your insurance provider to determine if any changes are necessary, including coverage for damages caused by load shedding and power surges.

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It’s also imperative that the information you provide about your home, appliances and electronics is accurate. 

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This’ll ensure that you receive adequate coverage.

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Adhere to Policy T&Cs

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The first step in accurately following this tip is understanding the policy wording, which you can only do by reading your policy documents.

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If any maintenance requirements exist, adhere to them with regular inspections and servicing to ensure your equipment is in good working condition.

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And as we mentioned a short while ago, surge protectors can be a requirement in most policies, so appease your insurer by getting this protective measure in place.

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Communicate Any Changes

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Notifying your insurer or broker of any material changes to your house or home conditions helps ensure your policy remains up-to-date and that you have adequate coverage for your household needs.

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In short, material changes can affect your policy; therefore, you must adjust your coverage.

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Repair Insured Items Swiftly

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Uninsured defects can cause damage to your insured items, leading to a negative impact on your policy and potentially resulting in a rejection of your claim.

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Prioritise repairs based on their effects on your insured items and promptly address home or electrical equipment defects.

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Install the Required Material

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Whether fire insulators, alarms, extinguishers, or even prescribed door locks, ensure that any approved equipment named in your insurance policy is installed and in perfect working condition.

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Regularly test these mitigating equipment to ensure they function correctly and replace them if necessary.

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This will help protect your electronics and appliances against potential damage.

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These are just a few helpful tips to ensure you are covered.

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Even More Helpful Load Shedding Tips

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The tips keep coming because nothing is more important than helping South Africans navigate this frustrating crisis.

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Thankfully, technological innovations offer some respite in terms of how best to survive load shedding and cushion the blow of its effects.

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Remember, load shedding can occur unexpectedly, so it's crucial to be prepared well in advance.

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Here are even more options you can explore that will come in handy when protecting your home against the crushing blow of power outages.

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• Use a UPS: An Uninterrupted Power Supply, or UPS for short, provides backup power to your electronic devices and appliances during load shedding. This’ll help prevent data loss and protection against sudden outages.

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• Surge Protection: A tip we repeatedly raise because of its popularity and usefulness. Most insurers strongly recommend using surge protectors, which shows that you have gone the extra mile to protect your home.

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• Unplug devices: If you aren’t looking to spend money protecting your belongings, the simplest and cheapest option is to unplug all your devices. This ensures that power surges won’t affect them when the electricity comes back on.

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• Backup alarm systems: Security can be severely compromised during load shedding, so if your home relies on alarm systems, consider installing backup alarm systems powered by batteries or solar power.

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• Backup batteries: These will come in handy when load shedding strikes. Instead of worrying about when and how to charge your devices, you can use backup batteries to ensure you always have power on your cell phone, laptop, and other electronics.

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• Inverters and backup batteries (Ecofllow): Electricity flows as AC or DC power, and when said power flows through the mains, an inverter ‘captures’ it in the form of an AC current, which is then stored in a battery. An inverter must first convert the AC power to DC power to store it.

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Like UPSes, these devices provide backup power to electronic devices and appliances, helping you stay connected. 

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Conclusion

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The power crisis in South Africa continues to reach new unparalleled lows; worse still, it doesn’t show signs of stabilising soon.

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Load shedding affects our households in various ways, including the risk of increased crime and electrical surges. 

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So naturally, as a nation, we are forced to adapt to our new normal. 

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Luckily, a few tips and tricks are available to smooth the adjustment process.

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Additional precautions like installing surge protectors, using UPSes, and having inverters and backup batteries can mean the difference between chaos and managing relatively well during periods without power.

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And, of course, the primary concern is how load shedding will affect your insurance coverage and, subsequently, your premium.

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It’s vital to note that while some insurance policies may cover losses caused by load shedding, others do not. 

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Therefore the onus is on you to call up your insurance provider or broker and establish the conditions of your coverage and what it entails.

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It’s crucial to update and communicate any changes to the policy and ensure that all required mitigating equipment is installed and is 100% in working condition.

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For now, all we can say is hang in there. 

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Our country may be in a dark place (literally), but there’s always light at the end of a tunnel, even one that stretches as long as this.

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Don't be left in the insurance dark... get a quote now! (Do it... come to the light side!)

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Pineapple (FSP 48650) is underwritten by Old Mutual Alternative Risk Transfer Insure Limited, a licensed Non-Life Insurer and authorised FSP. T&Cs apply. Premium is risk profile dependent.

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