OPINION ARTICLES

To solar or not to solar… What does your insurer say?

June 23, 2023

Opinion by Jaun Duvenage

Solar has boomed in South Africa recently, and for good reason. Our prolonged electricity crisis has forced many households and offices to take charge and invest in alternative power solutions.

While we hope for smooth sailing every day, we can't ignore the reality that sometimes unforeseen events arise. And we all know Murphy's Law… Whether it is theft, floods, winds, hail, golf balls (or hail the size of golf balls), lighting, fire, or power surges – you will be remiss not to secure your investment.

There are many things to consider before installing solar. Here are a few important points:

Reach out to your insurance broker about the best way to protect your investment.

Ensure your roof structure can support the solar system.

To ensure compliance with electrical regulations, the installation must be carried out by a certified electrician who will provide you with a Certificate of Compliance (CoC). Insurers may reject a claim if it is not installed by an accredited supplier.

Solar Insurance is usually not a stand-alone product. It generally falls under your building insurance – depending on several factors, for example whether the system is fixed or not. So, make sure your solar panel system is covered under the right insurance policy to avoid a claim being rejected.

If you live in a complex or estate, you will need permission from your body corporate for the solar installation as they will most likely be the policyholder. Additionally, as the owner, it is important to ensure that the body corporate has solar cover included, or that they increase the sum insured. This might affect your monthly levies.

If you live in an area prone to severe weather, it's always a good idea to double-check whether your current insurance policy covers these types of damages to your solar panels.

Know what your excess will be on a solar claim.

Read your policy wording carefully so that you know what is covered.

Ensuring you have the correct and sufficient insurance cover in place will give you peace of mind and protect your investment. Take a friendly step and reach out to us – we’ll be happy to advise on your solar insurance.

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