Personal Finance | Busting myths surrounding load shedding insurance | City Press

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Complaints arise when appliances sustain damage due to wear and tear rather than a single power surge event. North explains that, if wear and tear is identified as the cause, your claim may be deemed invalid. Have you made claims due to load shedding?

is to read your policy documents and familiarise yourself with the terminology. An appliance is not damaged due to “load shedding”, but rather by the power surge when the electricity is switched back on.xplains, a power surge is an individual event that damages an item. North says you need to check your policy to see whether you are covered for power surges.

An SAIA spokesperson says: “In earlier years before intensified load shedding, the cover for damage related to power failure was regarded as ‘soft cover’ in most policies, and was therefore included with no additional premiums on the policy. It includes a separate excess for the insurance cover and is usually subject to the policyholder’s installation of risk-managing mechanisms such as surge protection plugs.Complaints arise when appliances sustain damage due to wear and tear rather than a single power surge event. North explains that, if wear and tear is identified as the cause, your claim may be deemed invalid.

North says fridges and freezers are breaking down prematurely, with lifespans reduced from the expected 10 to 15 years to a mere three years. But it’s essential to differentiate between wear and tear-related malfunctions and breakdowns caused by power surges.While your insurer may require the installation of a power surge protector, it will not shield your appliances from increased wear and tear.

This would be an additional cover that would need to be taken out and discussed with the broker, but not all insurers will provide cover for physical damage due to the grid failure. “That is deemed a systemic risk and the normal rules of diversification of a risk pool become impossible to apply,” explains the SAIA spokesperson.

 

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