Alexander Forbes - tips on avoiding loss caused by power failures

Now that it’s official that Eskom will be regularly switching off our power for some time to come we need to look at measures to prevent loss or damage caused by interrupted power supply.

Plan A of course, says Gari Dombo, Managing Director, Alexander Forbes, Insurance is to buy a generator.

“This will ensure that geysers and fridges do not stay off for too long when you are away from home. It would also ensure that alarms do not fail due to flat alarm batteries.”

Given purchase, maintenance and fuel costs, however, most people, are not be able to afford this route. Furthermore, generators affordable to most homeowners are not able to switch on and off automatically when power fails or is resupplied. So, unless you are home at the time of the power failure a generator will not do you much good.

Therefore, Dombo, argues, “Assuming that one does not have a generator, what are the risks people face and what can we do to manage them?”

Firstly, “Heating appliances left on when the power goes off, but not switched off again when the power comes on, are obvious fire hazards.”

Therefore, simply switching off all heating appliances when the power goes off is the best precaution against fire.

That said, most insurers will pay out in the event of an unsupervised appliance causing a fire.

Secondly, continues Dombo, “Power failures can cause electric surge damage when authorities switch the power on again. Motors, computerised equipment and other electrical appliances can all be permanently damaged.”

To prevent damage to essential and expensive electrical equipment people can install electrical surge protectors on their main fuse boxes. Furthermore, surge protectors that fit into your wall sockets are also available.

A more simple solution suggests Dombo is to, “Quickly switch off appliances as soon as the power goes off”.

While some policies cover non lightening related surge damage, “You need to discuss this with your insurer, as cover varies betweendifferent insurers andspecific policies and some may not cover you”, cautions Dombo.

Thirdly, power failures can cause the battery on your alarm to fail.

Most alarms nowadays have a battery backup supporting the alarm system for between 6 and 12 hours in the event of a power failure. When the power comes on again, the battery is recharged.

If, however, adds Dombo, “The alarm battery is old or has suffered continual use as a result of repeated power failures, it will eventually pack in, exposing you to undetected attack by burglars.”

To ensure that burglar alarms don’t fail suggests Dombo, “Check when last the battery was replaced. While most batteries have a lifespan of 2 to 4 years it is advisable to replace an alarm battery every 2 years”.

It is also advisable to add an additional battery to the alarm system, something easily installed by your security company.

In the event of experiencing a robbery while your alarm battery is not working it is not always certain that an insurer will pay out.

Dombo explains that while, “Some insurers will be sympathetic - for example, if you can show that you have taken all reasonable steps to ensure that your alarm is normally in working order. Others, however, may not be quite as understanding.”

It is therefore each policy holders obligation to find out whether or not they are covered in the event they are burgled while their alarm is not working.

As a basic rule, however, Dombo suggests that, “If your policy has an alarm warranty, ask for it to be removed. The insurer may be prepared to do this for you if you have other protection in place, such as burglar bars and security gates.”

Finally, power failures can damage the contents of fridges and freezers. If the outage is a short one, however, there should be no damage to the food.

Immediate responses options include, “If possible, moving the food to somewhere where it can be re-refrigerated, or consuming the food before it goes off.”

While most policies provide some cover for deterioration of food, sadly this does not apply if power is deliberately switched off by the authorities.

That said, concludes Dombo, “If it can be shown that the authorities were negligent, legal steps can be taken against them to recover losses. Furthermore, consumers should not forget that the small claims court provides a cost efficient legal avenue.”

“This will ensure that geysers and fridges do not stay off for too long when you are away from home. It would also ensure that alarms do not fail due to flat alarm batteries.”

Given purchase, maintenance and fuel costs, however, most people, are not be able to afford this route. Furthermore, generators affordable to most homeowners are not able to switch on and off automatically when power fails or is resupplied. So, unless you are home at the time of the power failure a generator will not do you much good.

Therefore, Dombo, argues, “Assuming that one does not have a generator, what are the risks people face and what can we do to manage them?”

Firstly, “Heating appliances left on when the power goes off, but not switched off again when the power comes on, are obvious fire hazards.”

Therefore, simply switching off all heating appliances when the power goes off is the best precaution against fire.

That said, most insurers will pay out in the event of an unsupervised appliance causing a fire.

Secondly, continues Dombo, “Power failures can cause electric surge damage when authorities switch the power on again. Motors, computerised equipment and other electrical appliances can all be permanently damaged.”

To prevent damage to essential and expensive electrical equipment people can install electrical surge protectors on their main fuse boxes. Furthermore, surge protectors that fit into your wall sockets are also available.

A more simple solution suggests Dombo is to, “Quickly switch off appliances as soon as the power goes off”.

While some policies cover non lightening related surge damage, “You need to discuss this with your insurer, as cover varies betweendifferent insurers andspecific policies and some may not cover you”, cautions Dombo.

Thirdly, power failures can cause the battery on your alarm to fail.

Most alarms nowadays have a battery backup supporting the alarm system for between 6 and 12 hours in the event of a power failure. When the power comes on again, the battery is recharged.

If, however, adds Dombo, “The alarm battery is old or has suffered continual use as a result of repeated power failures, it will eventually pack in, exposing you to undetected attack by burglars.”

To ensure that burglar alarms don’t fail suggests Dombo, “Check when last the battery was replaced. While most batteries have a lifespan of 2 to 4 years it is advisable to replace an alarm battery every 2 years”.

It is also advisable to add an additional battery to the alarm system, something easily installed by your security company.

In the event of experiencing a robbery while your alarm battery is not working it is not always certain that an insurer will pay out.

Dombo explains that while, “Some insurers will be sympathetic - for example, if you can show that you have taken all reasonable steps to ensure that your alarm is normally in working order. Others, however, may not be quite as understanding.”

It is therefore each policy holders obligation to find out whether or not they are covered in the event they are burgled while their alarm is not working.

As a basic rule, however, Dombo suggests that, “If your policy has an alarm warranty, ask for it to be removed. The insurer may be prepared to do this for you if you have other protection in place, such as burglar bars and security gates.”

Finally, power failures can damage the contents of fridges and freezers. If the outage is a short one, however, there should be no damage to the food.

Immediate responses options include, “If possible, moving the food to somewhere where it can be re-refrigerated, or consuming the food before it goes off.”

While most policies provide some cover for deterioration of food, sadly this does not apply if power is deliberately switched off by the authorities.

That said, concludes Dombo, “If it can be shown that the authorities were negligent, legal steps can be taken against them to recover losses. Furthermore, consumers should not forget that the small claims court provides a cost efficient legal avenue.”