Beware of insurance shortfalls

The semi-permanence of loadshedding has made insurance a hot topic.

We approached insurance providers for the essentials to keep in mind when protecting one’s home and equipment.

Old Mutual Insure spokesperson Lizo Mnguni urged homeowners to ensure they were not underinsured when things went wrong.

“There are a number of very real threats facing consumers because of blackouts, including a risk of equipment failure.

“Maintenance of electrical equipment such as alarms, generators and inverters should take top priority,” he said.

While it is common knowledge that more people are investing in solar and inverters, Mnguni warned of an increased risk of fires emanating from incorrect installations.

He said while policyholders had a right to choose their installer of choice, they should ensure installers have the required experience and qualifications.

“Our requirement is that electrical installations must be done by a qualified electrician who must issue a certificate of compliance,” he said.

“Power surge claims are becoming increasingly difficult to insure. Insurance companies are in the business of managing risk, and when the frequency of claims increase, it can impact on the availability of insurance coverage.”

He said they had noted a significant increase in claims with the unprecedented level of loadshedding over the last 12 months, especially with regard to power surges claims.

“The frequency for claims impacted by loadshedding have almost doubled. Since 2018, the number of electronic equipment, burst geysers and power surge claims has risen by 93% at Old Mutual Insure,” he said.

OUTsurance client relations officer, Natasha Kawulesar, said they encouraged measures which may help in the reduction of damage, such as the installation of surge protection devices.

“These solutions are very affordable and effective. Generators, solar systems and battery storage are good mitigation strategies,” she said.

Damage caused as a result of power surges and dips, including fires, forms part of typical standard cover for homeowners, but businesses often need to pay an additional fee for power surge and dip cover.

“We encourage consumers to be alert and switch off items that may have been on when loadshedding kicks in, such as hair-dryers, irons, toasters and such to prevent damage once the power is restored,” Kawulesar said.

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