Loadshedding and Insurance.

Katelknaap said:
You don't have to, damage due to a powersurge remains covered whereas there is no cover if a grid failure occurs.
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Grid failure can cause powersurges, so in that instance if you have surge damage will you have cover?
 
airborne said:
Grid failure can cause powersurges, so in that instance if you have surge damage will you have cover?
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Fok sounds complicated. I have seen the voltages spike on my incoming feed after LS. My protection has kicked in a couple of times, blocking the feed to the house.
 
airborne said:
Grid failure can cause powersurges, so in that instance if you have surge damage will you have cover?
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A grid failure will be catastrophic and a widely reported on event. If that happens, the sh_t's hit the fan for this country and no claims related to such an event will be covered.
 
Just got this from Naked and I thought that coverage for power surges will be removed. Nope, still good. However your claims are now only limited to R30 000 for every 12 month period for power surges.

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My insurance company has informed me that a new General Exclusion to my Policy will come into effect on 01 May.

Looking at the clauses (which I don't want to post in full here since I'm not sure of what kind of confidentiality may be applicable), it's clear that no Loadshedding-related claims will no longer be covered even for specified items.

@Jan, it may worth doing an article on this.
 
AfricanTech said:
My insurance company has informed me that a new General Exclusion to my Policy will come into effect on 01 May.

Looking at the clauses (which I don't want to post in full here since I'm not sure of what kind of confidentiality may be applicable), it's clear that no Loadshedding-related claims will no longer be covered even for specified items.

@Jan, it may worth doing an article on this.
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I suggest you read again.

Grid collapse and damage/loss resulting therefrom is excluded

Very few insurers have excluded loadshedding but most have gone with reducing the cover limit on damage/loss resulting therefrom (including power surge)

Your insurer might have excluded both above but this is not the norm.
 
Hemi300c said:
I suggest you read again.

Grid collapse and damage/loss resulting therefrom is excluded

Very few insurers have excluded loadshedding but most have gone with reducing the cover limit on damage/loss resulting therefrom (including power surge)

Your insurer might have excluded both above but this is not the norm.
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That's what I thought until I read the definition of grid failure which includes the words "total or partial interruption, interference, suspension, blackout or failure of the water, gas, fuel or electricity supply from national, regional or private distribution network (grid)..."

The words "total or partial interruption, interference, suspension, blackout" pretty much describes every loadshedding event we have.
 
AfricanTech said:
That's what I thought until I read the definition of grid failure which includes the words "total or partial interruption, interference, suspension, blackout or failure of the water, gas, fuel or electricity supply from national, regional or private distribution network (grid)..."

The words "total or partial interruption, interference, suspension, blackout" pretty much describes every loadshedding event we have.
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There should be definitions of Grid Failure vs Loadshedding with the main words being scheduled.
 
You can post wordings wherever you like for reference purposes. Its freely available on all insurer websites. In fact it cannot be withheld.

Mind naming or PM me the insurer? Want to look into it.
 
I got the same from my insurer a few weeks back
 
Hemi300c said:
There should be definitions of Grid Failure vs Loadshedding with the main words being scheduled.
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The letter I received from my insurer defines both terms separately and then specifies that the exclusion relates only to grid failure.
 
mine is also grid failure only .but they are advising about protection devices
 
AfricanTech said:
That's what I thought until I read the definition of grid failure which includes the words "total or partial interruption, interference, suspension, blackout or failure of the water, gas, fuel or electricity supply from national, regional or private distribution network (grid)..."

The words "total or partial interruption, interference, suspension, blackout" pretty much describes every loadshedding event we have.
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As weird as it sounds, loadshedding is by definition not a failure of the grid. It is specifically implemented to avoid a failure.

Where you could end up in a grey area is if loadshedding causes a local substation to pop resulting in being without power for days or weeks on end, but again I think it would have to be pretty wide spread for this specific clause to be triggered.

This clause is no different than the exclusions on terrorism or war.
 
They added those last month.

I am more concerned with these:

NUCLEAR SUBSTANCES

We will not cover any loss, damage or legal responsibility which is caused by or results from or relates to nuclear weapons material, ionising radiations or contamination by radioactivity from any nuclear fuel, or from any nuclear waste, or from the combustion of nuclear fuel, which includes any self-sustaining process of nuclear fission.

NATIONALISATION

We will not cover any loss, damage or legal responsibility which is caused by or results from or relates to nationalisation, confiscation, commandeering, requisition, wilful destruction, forfeiture, attachment, impounding, seizure or preservation or any similar actions or processes by any court order, customs officials, police, crime prevention units, or lawfully constituted authority or officials.
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If they aren't covering you for this anymore then it means there is a good chance of it happening, so they will want to specify it.

From Santam
 
AfricanTech said:
Well Santam's HQ is here in Cape Town/Bellville within fallout range of Koeberg...:laugh:
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They added that Nuclear one more than 10 years ago, the Nationalisation one was within the last few years.
 
Outsurance just sent this - only have my house not contents with them

The impact of load shedding and power surge claims on the local insurance industry has received significant media attention. The possibility of an electricity grid failure has also been gaining the same attention. As a result, we would like to clarify our position.

The increased levels of load shedding over the last year, with the possibility of an electricity grid failure, has required a review of our cover.

Insurance cover exists for unforeseen events. Whilst the possibility of a grid failure is remote, it is not an unforeseen event and does not fall within the scope of insurance cover or reinsurance cover offered by our reinsurers. As such, the following general exclusion will be added to your policy:



Electricity grid failure or interruption

This policy does not cover any loss, damage or liability directly or indirectly caused by a total or partial interruption, interference, failure or suspension of the supply of electricity or restoration thereof.
This exclusion does not apply to power surge events resulting from load shedding. Load shedding is defined as scheduled electricity supply interruptions implemented by any party other than the insured, implemented in phases, which does not affect a whole municipality, province or country simultaneously.

Damage to insured property caused by a power surge following scheduled load shedding will still be covered, provided that power surge is already covered by your specific policy.

Whilst it is regrettable that this cover will no longer be available, to ensure sustainability and that we are there to assist you on future interactions and claims, it is a necessity. In line with our policy wording and the Policyholder Protection Rules, we are providing you with at least 31 days’ notice of this change. This change will be effective from 1 May 2023.

Feel free to reach out to us if you need any additional information or assistance.

I just need surge protection for my solar set up so not to phased about the rest.
 
I got this from Santam too. It refers to grid failure, not loadshedding.
 
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