If you haven’t specifically taken out cover for power surges you will receive a nasty shock when your electronic goods are fried during load shedding, as one of my readers discovered. “I have faced a huge financial setback with my gate motor, alarm system and three television sets damaged by load shedding,” says Michael who wants to know if he can lodge a claim with the City of Joburg.

Currently the City of Joburg has stated that insurance claims as a result of load shedding will be considered in the same manner as pothole damage to vehicles. But given the sheer volume of claims, it may take some time before you are successful, and it may be challenging to prove that the damage was related to load shedding.

The problem is compounded by the fact that your insurance may not include power surge cover unless you have specifically taken out that cover.

Christelle Fourie, Managing Director at MUA Insurance Acceptances, says most policies do not automatically cover damage as a result of load shedding as it is an extra cover that must be added to certain policies.

So it really is worth speaking to your insurance company or broker to find out what your policy does and doesn’t cover with regards to damage as a result of load shedding, specifically power surge damage. If it doesn’t, find out how to add this cover to your policy.

“If you are insured with a company that is not prepared to provide you with this type of cover, you might want to consider moving to another insurance provider,” says Fourie in light of the fact that load shedding and power surges will be a reality for the foreseeable future.

Not surprisingly, insurance companies are seeing an increase in power surge related claims, such as cellphones being left on charge during load shedding and getting damaged by the resulting power surges. “Cellular phones can be completely damaged when the power comes back on due to a spike in electricity flow and the same would apply to all other electrical appliances, as well as computer equipment,” says Fourie who adds that they are also seeing an increase in burglary claims due to alarm systems and electric fencing being rendered inoperable, once the back-up batteries run out during extended periods of load shedding.

What will your insurance cover?

Based on information provided by Santam, policyholders can receive the following protection, but not all protection is automatic:

• Losses caused by theft if burglar alarms do not operate because of a power cut. Policyholders are also protected if the alarm response company is unable to attend to an alarm activation. Consumers need to ensure that their alarms are in working order and that back-up batteries are charged.
• Residential buildings if damage is caused by an insured peril such as lightning or a thunderbolt. Power surges are not covered but cover for power surges is available separately. If a power surge causes a fire, the fire damage will be covered in terms of this section.
• Household contents are protected against power surges only if additional optional cover is taken out. The insured needs to select the optional mechanical, electrical or electronic breakdown option. However this still excludes loss of or damage to portable computer equipment and cellphones, as well as the cost of recovery or repair of data.
• Cover for damage to machinery from power surges is also only available as optional cover at an additional premium. This will protect against accidental damage to fixed machinery used solely for domestic purposes, such as swimming pools, jacuzzis, boreholes (excluding windmills and air conditioners), sprinkler irrigation systems, electric gates and garage doors. The machinery must be installed on the premises of the insured buildings.
• In the case of loss of or damage to the contents of fridges and freezers, the contents are covered if there is accidental spoilage of the contents due to a change in temperature. Spoilage due to any authority intentionally cutting off the power supply is excluded unless this exceeds a 24-hour period. Insurance cover will be in place for instances where the interruption occurs as a direct result of loss or damage to the electricity generating authorities’ property and/or equipment.

This article first appeared in City Press.