South African insurance companies could soon require surge protectors on appliances
South African insurers recommend that the best way to protect your electrical appliances from load-shedding damage is to unplug them before the power goes off and reconnect them a while after power has returned.
However, this isn’t always possible with load-shedding slots sprinkled throughout the day, as homeowners aren’t always around to disconnect their appliances.
There are ways around this, with King Price client experience partner Wynand van Vuuren recommending any SABS-approved surge protection product, provided it’s professionally installed.
“At King Price, we don’t prescribe specific surge protectors or switches. Anything that’s SABS-approved can be used, as long as it’s correctly and professionally installed if necessary,” he said.
Van Vuuren warned that although these forms of protection aren’t compulsory with regard to King Price’s policies and cover, they may become a requirement in future.
Momentum Insure chief actuary Rudolf Britz told MyBroadband distribution board-installed surge protectors are the best bet.
“It is best to unplug sensitive devices before load-shedding is suspended,” he said.
“This is inconvenient though, and the best solution is to install surge protection in the distribution board itself.”
“Any such installation must come with a certificate of compliance as well,” Britz added.
Example of a surge protection device for distribution boards
Both insurers agree that load-shedding-related claims have recently increased, with incidents extending beyond appliance damage.
“Over the last 8 months, we’ve seen an increase of more than 27% in claims for loss and damage to buildings, home contents, and portable possessions due to power surges,” said Van Vuuren.
Britz explained that Eskom’s rotational power cuts have resulted in increased vehicle accident and home burglary claims, in addition to claims for damaged electronics.
“We have certainly seen an increase in claims where load-shedding plays a role. Most concerning is that we have seen that when load-shedding is suspended, there often tends to be a power surge causing damage to sensitive electronic devices such as fridges, microwaves, TVs, and the like,” he said.
“This is not all, though; we have seen an increase in motor vehicle accidents due to traffic lights not working and also due to streetlights not working at night.”
“It has also caused an increase in home burglaries due to alarms or electric fencing not working as planned,” Britz added.
Britz also warned that while gas appliances significantly reduce reliance on the power grid, they present their own risks.
“Load-shedding will be with us for some time. Apart from the damage it causes due to the unreliability of electricity, the alternative fuels that get used also have their risks,” he said.
Momentum Insure chief actuary Rudolf Britz warned that gas appliances carry higher fire risks
“Be careful with gas appliances as they naturally lead to higher risk of fire.”
“Also, if you use a generator or an inverter, make sure that it is used according to the intended purposes and in line with regulations. It is always best to have it professionally installed with the necessary certificates of compliance,” Britz added.
King Price’s Van Vuuren clarified how insurers approach load-shedding and grid interruptions, as they are very different incidents.
“At King Price, we continue to cover our clients for loss and damage caused by power surges due to load-shedding, but there’s no cover for grid interruption,” he said.
He explained that load-shedding is the intentional, total or partial shedding of electricity supply from any source by any party other than the insured.
“[Load-shedding] is implemented in phases and doesn’t affect a municipality or province or country at the same time,” Van Vuuren added.
With regard to grid collapse — or a grid interruption — he described the incident as an interruption or suspension of power supply from any electrical power supply network to any end-user.
“Whether due to damage, an inability and/or failure (whether partial or total) of the utility supplier to generate, transmit or distribute electricity, or otherwise,” Van Vuuren added.
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