Many South Africans have invested in alternative ways to keep the lights on such as inverters, generators, UPS batteries, and even solar power.
Solar power has become even more attractive to consumers following government’s introduction of a solar panel tax incentive.
While you may be considering installing solar panels at your home, it is essential that you speak to your insurance providers before and after final decision.
Lizo Mnguni, spokesperson for Old Mutual Insure said that one of the mistakes that people making when it comes to the solar power systems is that they are not insured at their correct value.
Mnguni said that people often do not insure their solar power systems at the correct value, which means that if they experience a loss, they would not be able to replace it with the new replacement value of the insured item.
While not insuring solar systems at their correct value can be huge mistake another mistake that people make is not understanding the risks involved with installing solar power systems.
According to Marius Steyn, Personal Lines Underwriting Manager at Santam, it is critical that people understand the risks that comes with installing solar power systems before taking that leap.
Homeowner’s building insurance cover
Steyn said that people who have installed solar systems need to contact their insurer to increase their building insurance sum insured, to include the the cost of the solar assets installed to avoid being under-insured.
When a solar power system is installed it influences the value of the building, therefore the building sum insured should be increased to include the value of your investment in the solar power system.
“If the insured value of the building is not equal to the current replacement value, under-insurance (principle of average) could be applicable in the event of a claim and the claim will not be paid in full,” Steyn said.
Mnguni said that homeowners need to remember that they can only claim if their solar panel suffers damage from a sudden and unforeseen event while claims for wear and tear will be rejected as maintenance is their responsibility.
Hire a reputable installer
It is important that people do their due diligence and hire reputable installers to avoid avoid risks such as fire and explosion brought on by sub-standard or non-compliant installation.
Steyn warns that insurance providers generally do not cover damages resulting from implementation flaws or poor workmanship.
Damage done during the installation process are generally excluded under the buildings section of an insurance policy.
Identifying a reputable installer
Ensure that the installer has references of previous work and can provide you with information about how long the business has been in operation.
A reputable installer should provide a comprehensive quote detailing:
– the scope of work;
– components that will be used in the installation;
– after-sales services;
– warranties and guarantees.
They should also make you aware of potential issues that may compromise the installation and functioning of the solar power system before the installation.
Damages during the installation process should be covered by the installer under their Contractors All Risk Insurance policy.
Mnguni said that people that are installing your solar power system must issue a Certificate of Compliance.
This certificate is required by law and for the registration of the solar power generating system with the relevant municipality.
IOL Business