Insuring solar systems

Insuring solar systems

As a result of continued load shedding, we are receiving numerous requests to add solar systems to our various clients’ insurance policies.

Insuring a solar system is not as simple as just adding it to your policy.

Most Insurers will increase the house owner’s (building) sum insured by the value of the solar system and add the system under the building section of the policy.

Please bear in mind, however, that under the building section, there will be no cover for theft of the actual solar panels as theft needs to be accompanied by forcible and violent entry or exit to the building and as the panels are not located inside the building, but on the roof, there can be no forcible entry/exit and theft cover will therefore be excluded.

To circumvent the above theft exclusion, most Insurers are offering a reduced all risks rate & are covering the panels under the all-risks section of the policy in order for theft to be included.

To be able to do this, it’s important that clients request a full breakdown of the separate costs of the solar panels from their providers so that the correct replacement costs of the panels are reflected under the all-risks section of the policy and the balance of the solar system value under the building section.

Some Insurers will insure the panels under the theft section of the policy.

IF clients are living in secure, guarded estates and are not concerned about theft of their panels, then the whole solar system can be insured under the building section of the policy, bearing in mind that if the panels are stolen, the client would personally be reliable for the replacement costs.

Another important aspect of the cover is that the batteries have a life span and insurers will take this into account in settling any claim. They will only pay for the unexpired life of a battery. In other word should the life be 6 000 cycles and there is a claim at 3 000 cycles only 50% of the sum insured will be paid out less any applicable excess,

Please contact us if you have any queries relating to the cover of your solar system.

The requirements for solar panels

· Solar panels need to be SABS-approved.

· The solar panel installation must be carried out by a qualified & registered electrical contractor.

· The contractor must provide a certificate of compliance (COC) once the installation is complete.

· A copy of the electrical certificate of compliance (COC) must be sent to us.

· Solar panels must be serviced and maintained.

· Solar panels must include lightning and power surge protection.