Here’s why insuring solar installations is important

The demand by homeowners for renewable energy solutions, particularly solar panel installations, has increased considerably.

This comes on the back of Finance Minister Enoch Godongwana’s Budget Speech announcement of National Treasury’s rebate scheme for new rooftop solar installations on private homes.

However, there is confusion and uncertainty among some body corporate and homeowners associations (HOAs) about insuring solar installations.

“Some are not aware or advised that it is possible to cover solar panels under their existing building insurance policies,” said Hermanus van der Linde, the chief executive of IntegriSure Brokers.

For body corporates and HOAs, the options include insuring a fixed generator or a typical rooftop solar system by increasing the building sum insured with the replacement value of the system.

This could be added to the Participation Quota (PQ) for each unit.

Van der Linde said the system would be covered for typical building risks such as hail, fire, impact and accidental damage.

Other cover options include increasing the first claim’s power surge and exterior theft limit.

The solar system could be added as a specified item with an additional premium payable, which includes full building cover without limitations on theft and power surge.

In this instance, specify the system at full replacement value.

Unit owners

Van der Linde said unit owners in residential estates or complexes need approval from their body corporates or HOAs when considering solar installations.

“This is a new subject to deal with, and there is the added complication of unprecedented load-shedding. This makes it vital to add this insurance topic to the agenda at upcoming AGMs for members to understand the cover they will enjoy for solar panels.

“They also need to understand what is excluded and if there are any limitations.”

In certain instances, body corporates or HOAs may not want to increase the sum insured.

Van der Linde said there was reluctance from some body corporates and HOAs to add installed solar panels to their building insurance, despite insistence from unit owners.

“If there is still resistance, residents and owners living in estates or complexes will need to take out cover for their solar panels on their personal policies. We have seen various cover options ranging from adding solar panels to household contents cover to specifying them as all risk items.”

He cautioned consumers, body corporates and HOAs to ensure their solar systems were installed by accredited installers qualified to issue compliance certificates.

“If systems are not installed by accredited installers, insurance companies and manufacturers may reject claims.”
Reputable installers should have liability cover, product liability and cover against defective workmanship.

“When contacting solar installers, ask for their proof of liability cover,” said Van der Linde.

“If you plan to invest in renewable energy installations, ensure you are adequately insured by talking to your broker about the best product options for peace of mind, just in case something goes wrong.”

(Sarah-Jane Meyer – www.privateproperty.co.za).