Insurance companies in the industry have made changes to their policies regarding power surges caused by load shedding and grid failures. These changes will be effective from different dates, depending on the insurer, starting from June 2023. The changes are a response to a significant increase in power surge claims over the past few years. Premiums will no longer cover these risks adequately.
The main changes are as follows:
- National Grid Failure: Insurers will not be responsible for any loss, damage, or expenses resulting from interruptions or failures of the electricity grid in South Africa.
- Fridge and Freezer Contents: Insurers will cover accidental spoiling of contents caused by temperature changes within specified limits. However, they will not cover spoiling caused by adjusting the temperature control, damage to the appliances, or spoiling due to load shedding or grid failures.
Other changes that may vary between insurers include additional excesses for power surges, separate coverage for power surges due to load shedding at an extra cost, and the requirement for households to have a Type 2 Power Surge Protector installed.
It is important to unplug or turn off electronics during load shedding or power grid interruptions and only reconnect them after power has been restored. This recommendation is particularly crucial if you choose not to install power surge protection at your home.
