Renewable Energy: How It Affects Your Insurance Cover

Renewable Energy:
How It Affects Your Insurance Cover

Renewable energy is a growing trend in South Africa

Renewable energy is a growing trend in South Africa, with solar power being the most popular choice. This growing trend is fueled by our abundant sunshine, affordable solar panels, government support, and the need for reliable electricity.

However, it is important to note that the installation of a renewable energy system can affect your clients insurance cover, both domestic and commercial. This is because renewable energy systems are complex and expensive pieces of equipment, and they pose a number of risks, such as fire, theft, and electrical hazards.

If your clients are considering installing a renewable energy system in their home or business, it is important that they contact you to discuss their cover. The common practice in the insurance market is to simply include renewable energy equipment under the existing sum insured. However, this can lead to problems if the equipment is damaged or destroyed, as the insurer may not be able to pay out the full claim.

Howdie is doing renewable energy differently by insuring renewable energy equipment, as a separate line item to the underlying building or contents sum insured. This includes solar panels, batteries and inverters and applies to both domestic and commercial policies.

How Renewable Energy Installation Can Affect Your Insurance Cover

South African businesses are increasingly looking to renewable energy to overcome loadshedding and ensure uninterrupted operations, embodying the true spirit of the country’s adaptability and resilience.

Commercial insurance policies can be complex and require innovative thinking outside the box to enable brokers to provide comprehensive coverage and next-level services. Howdie’s commercial insurance offering is designed with brokers in mind, offering innovative solutions for complex renewable energy coverage needs.

The type of cover that your domestic or commercial clients need will depend on the type of renewable energy system that they install and its value.

It is important to ensure the following on domestic and commercial policies:

- Electrical Certificate of Compliance: Clients must provide an Electrical Certificate of Compliance for both the installation and the existing structure.
- Structural Certification: Insurers require a structural certification for rooftop installations.
- Labour Costs: Labour costs may be included in the sum insured, based on an invoice detailing the system and installation costs.
- Security Measures: Clients must have adequate security measures in place to prevent theft, such as perimeter fencing, boundary barriers, access control, CCTV, and an alarm system linked to 24-hour armed response.
- Record of Advice: When adding renewable energy equipment to a domestic policy, the following information must be included on the record of advice:
  - - - Invoice/Inventory of insured equipment (PV panels, batteries, inverters, wiring, and accessories)
        
        Make, models, and specifications
        
        Declared NRV values
        
        Installed plant production capacity
        
        Risk location details, including the address of the site or premises (include GPS coordinates)
        
        Whether the equipment is installed on the rooftop or ground-mounted

Choosing a Renewable Energy Installer

When choosing a renewable energy installer, it is important that your clients select a reputable company that has a good track record. It is important to make your clients aware that the choice of installer can have an impact on the underwriting of their insurance policies and certain events may be excluded in the event of a claim.

Here are some tips for your clients when choosing a renewable energy installer:

- - Ask for recommendations from friends, family, and colleagues.
  - Check online reviews of different installers.
  - Get quotes from multiple installers before making a decision.
  - Make sure that the installer is reputable and insured.
  - Ask about the installer’s warranty on their work.
  - Get everything in writing, including the terms of the contract and the warranty.

Share these tips and recommendations with all your clients, even those with existing renewable energy insurance coverage. As your broker partner, Howdie is here to help you and your clients navigate any renewable energy insurance questions you may have.