Pieter Kruger Blog Post Securitas

Loadshedding has become as South African as biltong and braais.

The Unplugged Reality: How Loadshedding is Impacting South Africa's Short-Term Insurance Industry.

By Pieter Kruger, Securitas Financial Group

You don't need me to tell you that loadshedding has become as South African as biltong and braais. But have you ever stopped to think about how this on-again, off-again electricity is messing with your short-term insurance? Trust me, it's worth a second look.

Let’s start by talking solar, because who wouldn’t want to break free from Eskom’s moody power supply, right? But before you climb onto your roof with a toolkit, remember: insurers want to know that your shiny new solar panels were installed by a pro.

Make sure you get that Certificate of Compliance (COC) when you install your solar system. Without it, you might as well have no coverage at all. Don’t take shortcuts here, folks—do it right and you’ll sleep better at night.

High Stakes Hide-and-Seek: Theft of Solar Panels.

Now, let’s say you’ve got your solar panels up and running. Good on you! But beware, these panels have become hot commodities (no pun intended) for thieves. Don’t think a simple padlock will do. You’ve got to invest in security measures like surveillance cameras or alarm systems. Your insurance policy will probably demand it.

Total Blackout: Off the Grid, Off the Policy.

And what if Eskom’s grid goes totally kaput? Well, most insurance policies have a get-out-of-jail-free card for that scenario, meaning they won’t cover losses if the whole grid goes down. I know, not cool. But from their point of view, that’s a risk too big to take on.

Zap! About Those Excess Payments on Power Surges.

Loadshedding is bad enough, but when the power comes back on, it can sometimes bring a surge strong enough to fry your electronics. Did you know that since January 2023, many insurers have upped their excess payments for this? It means you pay more out-of-pocket before your insurance even kicks in. Ouch!

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The Fine Print: Policy Changes.

A big heads-up: since the start of 2023, a lot of insurers have been tweaking the terms of their policies. Many now have stricter conditions and reduced coverage, especially when it comes to electrical issues caused by loadshedding. Read your policy docs carefully, and if something doesn’t make sense, give your Broker a shout to clear it up.

The Bottom Line!

Loadshedding is more than just an inconvenience—it’s affecting our financial safety nets, and we all need to wise up about it. My advice? Review your insurance policies, make sure you’re compliant with any new requirements, and above all, keep the lines of communication open with your Broker. Because in these uncertain times, staying in the loop could be your best policy yet.

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