Insuring Your Appliances Against Power Surges is Critically Important

In South Africa, power surges – along with power outages – are frequent and dramatic. In fact, nearly half of the South African power grid failed during the 2022 Easter weekend. Inconvenience aside, it can cause significant damage to your appliances. Along with sensible preventive measures, insuring your appliances against damage caused by power surges is an absolute necessity. And, just as you insure your motor vehicle against theft or damage; it makes sense to also insure against the loss of your valuable appliances. Many people are unaware of just how frequently power surges take place – and how they can damage or destroy electrical appliances. There are also many who assume that they’re covered for losses like these. However, they often neglect to update their household insurance policy, or take out short-term insurance for specific high-value items. In this short article, we’ll cover a few essential points about insuring your appliances – and share a few valuable tips that apply to every household or business.

Why Power Surges Cause So Much Damage

A power surge is what happens when there’s a voltage spike – a sudden increase in electrical current. Surges like these happen for various reasons, a lightning strike being the most obvious. But in South Africa, load shedding has become the biggest culprit. Load shedding was introduced in 2007 as a means of reducing load – or demand – on the national power grid. This was done in order to service larger areas while new infrastructure was being built. But apart from the fiscal impact of load shedding on industries, another costly consequence is damage to machinery and appliances caused by power surges. When connection is restored after every load shedding cycle, the restoration of service is frequently accompanied by a power surge. This happens because of uneven current levels at the moment of reconnection – and appliances are particularly vulnerable. A sudden surge of excess current increases the temperature across circuit boards and switches in common appliances. This can cause an electrical short or burnout, or even more serious damage to motors and transformers. The result? Often, costly repairs or even an appliance that is completely irreparable.

Load Shedding Isn’t the Only Culprit

South Africa is noted for its lightning storms. Almost the entire country is vulnerable to these, and one direct strike on a home or external power cable can cause catastrophic damage. The rate, or density, of lightning strikes in South Africa is higher than most countries on Earth – so we live in a high-risk environment. Bear in mind that a lightning bolt can also be incredibly destructive, with lightning temperature up to five times hotter than the surface of the sun! If you’re still wondering whether you should be insuring your appliances, the answer is obvious.

The Additional Costs of Power Surge Damage

When appliances or machinery are damaged, there’s obviously an immediate financial cost. But the true cost goes beyond that: Unforeseen downtime: You’re unable to use a washing machine, or your gate motor is inoperable. Your internet connection has to be restored. Incidents like these cost you time – and of course, the arrangements needed to sort out claims or replacements. Wastage: If a fridge or freezer is disabled, food goes off and wastage is incurred, in addition to the cost of repair. Business is affected: If you’re in business, time is money. And downtime – personal or corporate – can cost you clients and opportunities.

How to Spot Power Surge Damage

Sometimes, damage to an appliance is immediate and obvious. The appliance may be completely dead, or only work intermittently. There are other signs you should look out for as well: • Flashing lights or error messages on displays or clocks. • A burning smell, acrid odour, or visible signs of a burn at plug points. • A tripped power strip or surge protector that may need re-setting.

Smart Steps to Protect Your Appliances

As the old saying has it, prevention is better than cure. (And of course, it applies to important considerations like healthcare cover and life financial planning too.) Naturally, insuring your appliances should be the very first step. If you consider the downtime, inconvenience, and expense of appliance failures, taking practical precautions is a smart strategy. Here are some to consider:

Disconnect Your Appliances

Disconnect your appliances during load shedding episodes or during lightning storms. Many appliances still draw power even when they’re not active, so unplugging when not in use can save power too.

Prevent Electrical Overload

Avoid plugging too many appliances in at one point. Sensitive devices like computers, routers, and TV display monitors shouldn’t share a plug point. They have sensitive circuit boards and are prone to damage from fluctuations in power. Appliances like washing machines, air conditioners, and fridges should also have their own plug or power strip.

Purchase a UPS

An Uninterrupted Power Supply or UPS is a rechargeable battery storage system that allows you continue operating important appliances like a computer, router, and modem even during load shedding. In addition to the benefit of continued connection, a UPS also offers some protection against power fluctuations when power is restored.

Use Surge Protectors

Surge protectors are specialised plugs or fitments that act as a barrier against power surges. They are designed to divert excess voltage into a grounding wire before it reaches your appliance. Although they’re not always 100% effective, they vastly increase the protection level.

Use a Surge Protecting Power Strip

A power strip is a multi-plug that enables you to feed power to a number of appliances from a wall socket. Look for power strips that have an overload sensor (usually indicated by a reset button on the strip). This way, if there’s too much power drawn through the strip, it will trip, and potentially prevent appliance damage.

Update Your Home Insurance Plan

Of course, this is the most important point! Despite the best precautions in the world, appliance damage can still occur. Insuring your appliances is an imperative. Kgodiso Mokonyane, Head of Strategy at Discovery Insure, says: “Recent Discovery Insure claims data reveals that clients are between 108% and 130% more likely to submit a power surge insurance claim after experiencing a spike in voltage after a load shedding event.” If you’re currently insured, it’s a good idea to ensure that your cover is optimised – and we’ll assist you, every step of the way.

The Power’s in Your Hands

In order to provide you with the very best cover, Discovery Insure has introduced the power surge benefit to cover the full cost of damage to insured items. Discovery Insure clients can now also upgrade their Essential and Classic plans to take advantage of increased cover against power surges, for a small additional premium. “Replacing expensive appliances which are damaged or broken as a result of a power surge is a very costly exercise,” Mokonyane says. “This power surge cover certainly adds value to our clients and helps them to seamlessly ensure that new appliances can be purchased if required.” At the Pogir Group, we can help you with all your short-term insurance needs, every step of the way. Our brokers enjoy an excellent relationship with the Discovery Group and can offer you the very best advice and service to ensure your household and business is adequately covered. Insuring your appliances – properly and comprehensively – is a smart move. Pogir. Smart, with heart. Contact us today and discover how we can assist you with your short-term insurance needs as well as healthcare, financial planning, and more. _________________________________ LINK INDEX nearly half of the South African power grid failed https://www.dailymaverick.co.za/article/2022-04-19-stage-4-power-cuts-hit-south-africa-as-nearly-half-the-grid-fails-over-easter/ lightning temperature https://www.weather.gov/safety/lightning-temperature life financial planning short-term insurance needs Contact us today https://www.pogir.co.za/contact-us/