Insurance and Load Shedding

Eskom load shedding has become the defining insurance question of the decade for SA households and businesses. Here is exactly what most policies cover, what they exclude, and how to plug the gaps.

The covered scenarios (with conditions)

Event | Typically covered? | Conditions
Power surge damage to appliances | Yes, on household contents | Surge protection device often required
Lightning strike causing surge | Yes | Specific peril; usually no surge device needed
Spoilt food in fridge/freezer | Sometimes | Usually capped at R3,000-R10,000; requires power outage > 24 hours
Stolen goods during outage | Yes | Forced entry signs required; alarm condition may apply
Vehicle damage from non-functioning traffic lights | Yes | Standard accident cover applies
Inverter/battery damage | Yes if declared | Must be declared on schedule, often sub-limited

The major exclusion: consequential loss

Most household policies exclude consequential losses - lost income, business interruption, perished medication, missed appointments. Business policies need a specific Business Interruption section to cover lost trade during outages.

Solar & inverter cover - the new battleground

SA homes installing solar and battery systems must:

Notify the insurer of the installation with COC (Certificate of Compliance).

Increase the sum insured to reflect the system's value (often R80k-R350k).

Specify cover for power surges, lightning, and accidental damage.

Ensure roof-mounted equipment is covered against storm and theft.

Confirm warranty - insurance excludes manufacturer defects covered by warranty.

The 7-step load-shedding insurance audit

Install SAIA-approved surge protectors at the DB board and on sensitive equipment.

Declare every inverter, battery and solar panel on the policy schedule with replacement values.

Confirm food spoilage sub-limit and topup if you store breast milk, insulin or medical supplies.

For home offices, attach equipment all-risks for laptops and monitors.

For small businesses, add Business Interruption with a stated indemnity period.

Document serial numbers and photograph all electronics annually.

Verify alarm certificate is current - lapsed alarms can void theft cover during outages.

Mistakes that void claims

Using a non-certified inverter installer (no COC), running extension leads to neighbours' equipment, exceeding declared circuit loads, or failing to declare load shedding-related claims when renewing - any of these can lead to rejection.