How Load Shedding Affects Your Insurance Cover – And How You Can Protect Yourself

South Africans have become accustomed to load shedding, but the recent unanticipated increases to stage six load shedding have led many to worry that the nation may face increased load shedding for the foreseeable future.

While load shedding isn’t an insurable risk, it can damage electrical equipment, increases the risk of fire, and may cause failures in security systems, resulting in increased safety concerns. While many may be insured against these losses, it is imperative that private as well as business insurance policy holders review their policies to make sure they not only have sufficient cover but adhere to all conditions of their policies to avoid the risk of a rejected claim or increased premiums resulting from a high number of claims.

While you may not be responsible for load shedding and its impact, all insurance policy holders are expected to exercise duty of care to minimize loss, as part of their insurance policy wording. Insurance cover is also based on certain risk conditions which are disclosed by the policy holder upon taking the cover. Load shedding may affect some of these conditions and result in a reduced insurance payout or even a rejected claim. A typical example of this may be the security system used to protect a property. Load shedding, over time, could affect the functionality of the security system. Should a break-in occur on the property while the security system is defective or not activated, the claim could be rejected by the insurer.

Here are five ways that individuals can protect themselves and their assets:

1. Contact your insurance broker to ensure that you understand all conditions of your insurance cover and ensure that you are adequately covered should a loss occur.
2. Test your security systems regularly. One of the conditions within your policy includes the requirement to regularly test your alarm system, to ensure that it is always in good working condition. Testing your system will enable you to detect any defects caused by load shedding.
3. Alarm systems, garage doors and electric fences rely on electricity. If your insurance cover is on condition that your security system is active and in working condition, you need to invest in a good back-up power system, including batteries, solar power, or inverters - especially if you will be away from your property for an extended period. Also use power-independent home security measures as an extra layer of security.
4. Load shedding increases the chance of power surges which often leads to damage of home appliances and increased risk of fire. Make sure that all appliances, especially those that could catch fire if left unattended, are turned off and unplugged when load shedding begins. Although there is power surge insurance, installation of power surge protectors is a must on your distribution boxes (DBs) by qualified electricians.
5. Arrange for a trusted individual to frequently visit your property, check your security system and appliances during long absences. You can also plan for your security company to make frequent checks on your property in your absence.

There is no doubt that load shedding is here to stay. As we head into the festive season and new year, ensure that you have taken the necessary precautions to adequately protect your home, business, and property – even through the uncertainty that load shedding can bring.