Insurance warning for people with electronics and appliances in South Africa

King Price says most insurance policies in South Africa won’t cover damage caused by power grid interruptions as they are unpredictable and challenging to prepare for.

In a blog post, the company explained how insurers approach claims relating to scheduled power cuts, such as load-shedding, and unexpected power outages.

“Did you know that there’s a difference between load-shedding and grid interruptions? And did you know that most insurance policies won’t cover one of them?” King Price wrote.

It explained that load-shedding occurs when Eskom deliberately cuts power to an area to prevent a grid collapse.

On the other hand, grid interruptions are unplanned and occur due to system faults, maintenance issues, or equipment failures.

“Think of it as a power blackout that happens unexpectedly. Unlike load-shedding, grid interruptions come without warning, making them harder to prepare for,” said King Price.

It explained that most insurance policies, including those from King Price, cover damage related to load-shedding but not grid interruptions.

“This means if your appliances are fried due to a power surge following load-shedding, you might be covered, but if a grid interruption causes the damage, you likely aren’t,” it added.

It provided examples of what insurers will and likely won’t cover:

• Damage from load-shedding-related power surges: Covered (if added to your policy).
• Losses due to general power failures or outages: Not covered.
• Spoiled food due to extensive power outages: Not covered (unless specified in your policy).

It advised that policyholders check their policy schedules and confirm what their insurer covers to avoid nasty surprises.

“If you rely on power-sensitive appliances, consider additional surge protection to avoid unexpected repair costs,” said King Price.

“Load-shedding and grid interruptions can wreak havoc on your appliances, but with the right preparation, you can minimise damage and maximise peace of mind.”

King Price listed steps that homeowners should take to protect appliances:

• Install surge protectors: Distribution board surge protectors installed by a qualified electrician will protect your home from sudden voltage spikes.
• Use uninterrupted power supplies and inverter systems: These provide temporary power to critical devices like routers, computers, and TVs, and have built-in surge protection.
• Keep up-to-date with the load-shedding schedule: Use apps like EskomSePush to anticipate outages and plan accordingly.
• Unplug devices during outages: Disconnecting devices from power will prevent damage caused by sudden voltage spikes when power is restored.

Eskom’s winter outlook showed that no load-shedding will be required if unplanned capacity losses remain below 13,000MW.

However, the power utility was already forced to implement stage 2 load-shedding in mid-May 2025. Eskom warned it may have to implement 21 days of up to stage 2 if outages reach 15,000MW.

Positive winter outlook with a warning

The sudden onset of stage 2 load-shedding during the evening peaks between Tuesday, 13 May, and Thursday, 15 May 2025, raised concerns about Eskom’s winter outlook.

The power utility said it was forced to implement load-shedding during the evening peaks due to the delayed return of several units from scheduled maintenance and some unit breakdowns.

“These delays are coupled with an unplanned capacity loss that has now temporarily exceeded 13,000MW,” it said.

Eskom said it was coming out of an intensive maintenance cycle, which is essential for the long-term reliability of generation units, but temporarily reduces system flexibility and resilience.

“As a result, the grid is more sensitive to unexpected disruptions. We sincerely apologise for the inconvenience this causes,” it said.

While the power utility acknowledged that unplanned capacity losses had exceeded its best-case scenario of 13,000MW for no load-shedding this winter, unplanned outages surpassed even its worst-case scenario.

According to Eskom’s hourly unplanned capacity loss and other loss trend chart, outages reached as high as 16,211MW at 23:00 on Tuesday, 13 May.

Impower energy expert Matthew Cruise described the sudden need for load-shedding as a bad sign, adding that South Africans should prepare for up to stage 4 load-shedding this winter.

“Eskom is not giving much detail about what has been going on at the individual power stations,” Cruise said.

“We can actually expect that there’s going to be load-shedding up to stage 4, so we need to prepare for that.”