Eskom's warnings of power outages highlights importance of insuring electrical belongings
Following power utility Eskom's announcement last week that South Africans could expect to see the implementation of rolling blackouts, also known as 'load-shedding', in residential urban areas for the first time in five years, consumers are being warned to ensure they are protected against financial loss as a result of damage to electrical items caused by power surges.
Christelle Fourie, Managing Director of MUA Insurance Acceptances, says that power outages and the resulting energy spikes can wreak havoc with computers and other electronic systems and appliances in the home. "The unfortunate reality is that the unpredictability of the South African energy grid can put consumers at risk of financial loss due to damage caused to expensive appliances and electronic equipment. To reduce the risks of insurance claim rejections, it is important that consumers understand the wording and limitations imposed in their insurance policies around this type of cover."
Fourie says that consumers need to make sure they know what their insurance policies cover, as claims as a result of 'blackouts' and resultant power surges are often not included or limitations are imposed. "For example, most policy documents require a blackout to last more than 24 hours before the cover actually kicks in or will only provide limited cover to items damaged as a result of these."
A recent study conducted by a Wits PhD student showing that South Africa could start seeing extreme weather conditions due to climate change, further highlights the importance for consumers to have adequate protection from power surges and blackouts that can also be caused during storms. "During extreme weather conditions, we are more likely to experience power surges and blackouts. Consumers who own expensive, high tech systems, such as home theatre systems, are advised to reduce their risks of power surges by installing power surge protector systems."
She says that load shedding can affect more than just household appliances.
"Power cuts often cause traffic and other road lights to go down during this time, which increases this risk of serious road accidents. Consumers are encourage to be extra vigilant while on the roads when this happens."
