Power cuts are likely to be a regular feature this festive season as embattled Eskom struggles to keep the lights on.
But power cuts bring with it the risk of power surges. And the voltage fluctuations often lead to household appliances being damaged beyond repair.
All these years you may have diligently been paying your insurance premiums, thinking you’d be covered for an event like this. And that the quick fix was just a phone call away. But many are now finding out the real cost -- and they’re taking to social media to complain. An increase in excess costs has them hot under the collar.
"My husband recently went through our policy schedule only to find out that our excess for power surges has been increased from R500 to R4 000 without notice. He had a discussion with a consultant and he said ’everybody's excess went up as the insurers cannot keep paying out due to load shedding’,“ complained one.
"I have been with Outsurance for 18 years with an excellent track record. We were hit by a power surge and my computer blew. Outsurance wants an excess of R4 500 for my computer, which I find totally unacceptable as it is almost the price of a new CPU. They are not prepared to budge on this in spite of my loyalty, history and the fact that I'm a pensioner," said Niru S on HelloPeter.
Outsurance said the increase in excess costs was necessitated by a spike in power surge claims.
Natasha Kawulesar, Outsurance's head of client relations confirmed to Weekend Argus: "One of the consequences of load shedding is increased power surges and dips that can cause damage to electrical items. We have experienced a significant increase in claims for damage to electrical items as a result of these surges and dips. We considered several options in determining how we could best manage both the increased risk and client experience, such as: an increased premium; capping of cover and power surge cover to be changed to optional cover.
“We are of the view that we can better manage client experience without such drastic measures. Part of why an excess exists is for clients to self-manage and to carry the costs of any loss under the excess value. By increasing our excess, and not one of the options mentioned above, we ensure that we can still assist our clients in those instances where there is a bigger financial loss -- amounts above the excess would be covered by us."
But not everyone has a sad tale to tell about their experience with insurers.
Ashley Daniels from Atlantis said: "Last year some of my appliances were damaged during the blackouts. I never had any problems with Outsurance regarding my power failure claims. And last year my house almost burnt down because of faulty plugs. Outsurance sorted that out as well."
Glynn Hayston explained: "We had a power failure and afterwards our fridge, bar fridge and another appliance failed to turn on. I called my broker and submitted a claim to Santam. They paid out without any issues. Total claim was R9 130. I have since beefed up my surge protection."
However, Junaid Samodien from Wynberg thought he had the perfect plan in place to counter potential power surges from the blackouts. Switch off before the power goes out, and back on again 10 minutes after the electricity is restored.
"Three weeks ago (after load shedding) when the power turned on, I heard a bang in my kitchen and the geyser thermostat burst," he explained, adding that he was not always able to be home to switch appliances off during the blackouts. "A week later my microwave stopped working. Also power surge issues, as it can't heat up anything. Repairs to fix both will be in the range of R1 800 if I can find the right repair company."
One client, who asked to remain anonymous, said: "Post-load shedding, five minutes after the power came back on, we tried to switch the TV on, and then it was just dead. It was an LED TV which we've had for about four years. We've had kettles and irons also damaged from power surges. Everybody says you've got to get power surge protectors and unplug your appliances before load shedding, but what a shlep. And TVs don't come cheap. We ended up buying a new TV. Someone advised me -- don't even bother with insurance, if it is load shedding then it is actually better to throw your TV on the floor and say that your toddler broke it and pay the excess. But I am not prepared to commit insurance fraud."
But short-term insurers say they offer adequate power surge cover.
A Santam agent confirmed there'd had been an increase in claims for damaged items from power surges. Santam's power surge cover was fixed at R1 500.
Budget Insurance said their power surge excess was around R1 250, or up to 5% of the total value of the claim, depending on the value of the appliances being claim for.
Old Mutual's insurance department said their power surge excess was free for cover of up to R10 000. Anything above that would incur a R1 000 excess charge.
For those living in an apartment block or complex, excess is determined by the body corporate, as they were the holders of the insurance policy.