As South Africans, we are no strangers to loadshedding and we know it is here to stay. Mail and Guardian have indicated that loadshedding may be here until 2027. Here at GO Insure we aim to shed light on how we can best support our customers during these challenging times. While loadshedding poses risks to both individuals and insurers, it is crucial to review insurance contracts, assess potential damages, and provide sustainable coverage.
As loadshedding becomes more frequent and severe, the risks associated with damages and claims rise. Let us highlight how best to go about your loadshedding coverage…
Understand Loadshedding-Related Damages:
When it comes to loadshedding, insurance coverage may not directly apply, but the resulting consequences can be insurable. It is of utmost importance for insurance brokers to assist their clients in evaluating their coverage options for possible damages caused by loadshedding, such as power surge incidents and the spoilage of perishable items stored in fridges and freezers. It is essential for clients to be well-informed about any exclusions and have a clear understanding of the situations in which their coverage might be invalidated.
Unveiling the Causes of Damage:
Not all damages caused by loadshedding are covered by insurance policies. Loadshedding can result in voltage fluctuations during power restoration. Various factors contribute to damage, including environmental conditions, wear and tear, incorrect utilization or installation, device age, service history, and inherent lifespan. These causes of damage are typically excluded from coverage. However, if the cause can be established as a power surge, coverage may be available depending on the specific policy.
The Importance of Establishing Cause:
To file a claim, policyholders are encouraged to retain damaged electronic items for testing by a service provider to establish the cause of damage.
Beyond Power Surge – Fire Damage and Food Spoilage:
Loadshedding can lead to fire damage and spoilage of food in fridges and freezers. Fire damage is typically covered unless specifically excluded in the policy. Coverage for food spoilage varies across policies, and customers should carefully review the terms and conditions of their specific policy.
Proactive Measures for Asset Protection:
Policyholders are advised to take proactive measures to protect their assets. This includes installing surge protection, regular system servicing, and timely battery replacements. Opting for solar-chargeable lights or loadshedding bulbs instead of candles, unplugging electronic devices during loadshedding, and delaying their reconnection after power restoration can help prevent damages and fire claims. Compliance with regulations regarding generator or backup power systems installation and surge protection is essential to avoid potential damage and rejected claims.
By understanding the coverage available and taking proactive measures to safeguard their assets, policyholders can effectively navigate the challenges of loadshedding. GO Insure remains committed to providing support and educating customers on the best ways to protect themselves and their belongings.
