We’re In This Together - Insurance Advice For The At-home Effects Of Stage 6 Loadshedding

When the first bout of loadshedding began in 2007, no one could have imagined that the mounting pressure on the national grid would become a full-blown energy crisis. Today, loadshedding is a South African reality that experts predict will persist into the near future. For local homeowners, this presents several unique, power-related challenges which have implications for various types of insurance cover.

Offering her insights on how consumers can safeguard their property and assets from the effects of the various stages of loadshedding is Greta Goosen, Head of Customer Experience at MiWay Insurance. This includes:

1. Double check your back-up battery

Touching on some of the associated risks that accompany loadshedding, Greta urges consumers to ensure that the back-up battery for their electric fencing or alarm system can withstand power outages for long hours. Typically, a high-quality battery can last for up to 8-10 hours given that it has had adequate time to charge. This is an important factor to bear in mind given that opportunistic criminals may aim to capitalise on security system failures when the lights go out.

2. Be aware of the risks involving fire

Loadshedding also brings with it an increased risk of fire damage, given that South African households may be using alternatives such as candlelight or gas for heating or cooking. It’s important for homeowners to check whether their insurer provides cover for both fire and gas-related explosions, as well as what their responsibilities are in mitigating the risks that come with using energy alternatives.

3. Prepare for power surges and dips

One of the most common damages caused by loadshedding in South African homes is electrical failure as a result of a power surge. This occurs when the voltage input into a piece of equipment exceeds the norm and flows at a sudden higher voltage and frequency when the power is turned back on. This can cause appliances to shut down completely or significantly shorten their lifespan. The chance of data being wiped from a hard drive or work on a PC or laptop being lost in the process is also high.

Surge-proof adapters are an effective way of mitigating the risk of a power surge. These surge-protection devices can be installed in individual power sockets or on your home’s distribution board. The latter option will require the expertise of a qualified electrician to ensure correct and safe installation.

Many South Africans may be concerned as to whether their home contents insurance policy covers damage related to power surges. The answer will depend on the insurer’s offering. MiWay’s home contents insurance policies give consumers the option of adding additional cover for power surges and power dips.

“The best way to ensure that your policy is inclusive of this type of cover is to talk directly to your insurer. You can prepare for the conversation by creating a list of questions, all of which should form part of how you choose and negotiate with an insurer,” says Greta. Some of these questions include:

• What is the excess that applies in the event that damage is incurred due to a power surge or dip?
• Is having functional surge protection a prerequisite in the event of a claim?
• Are there any electrical compliance issues I need to be aware of that will affect the cover I can apply for? And will the damaged item be covered for its full replacement value if it shuts down completely?

4. How to ensure a speedy claims process

In the event of needing to process a claim, Greta advises homeowners to first report any crime-related incident due to loadshedding, to the South African Police Service. In cases involving theft or vandalism, a police case number will be required to initiate the claims process.

Homeowners are also advised to collect as much information on how the property destruction or damage occurred. This may include affidavits by witnesses or bystanders, receipts of purchase to validate the worth of an item as well as photo and video evidence.

Greta concludes: “At MiWay, the onset of loadshedding has meant ‘all hands-on deck’ throughout our business. We are aware that during this difficult time, South Africans are in need of sound advice and guidance on when and how to act when processing a claim. Our claims agents can provide clients with step-by-step assistance, which can be a source of much-needed relief in navigating the administrative tasks involved.

It may therefore be useful to check what the claims process involves and how it is facilitated before choosing an insurer – knowing that your case will be attended to swiftly and with professionalism can make all the difference when disaster strikes.”

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About MiWay InsuranceMiWay is a licensed non-life insurer and financial services provider, offering customers a range of non-life insurance products including motor, household, homeowners, business insurance - as well as liability cover.

At MiWay, we are fanatical about delivering an awesome customer experience. We view this as our real differentiator and are passionately committed to ensuring that we always keep our promises, and deliver the type of service that our customers deserve.