PSG Financial Services answer the question; “Solar panels: what are the short-term insurance considerations?”
Before considering solar installation at your residence or business, we recommend you seek the advice of an accredited specialist solar PV systems provider. These specialist providers are well qualified and acquainted with the various laws and regulations that govern solar system installations and will be able to do a proper assessment of the exact requirements of your individual residence or business. Ensure you get the right advice when installing a solar system, as the process can become quite complicated without the help of a reputable accredited installer.
Obtain proof that the accredited appointed installer has evaluated the suitability of the roof to carry the additional weight of the solar system to be installed: A pre-installation inspection is crucial to ensure that the building’s roof structure and all rafters are not compromised or damaged in any way for the solar panel and system installation to continue.
The specialist provider should be able to advise you of any potential issues that may compromise the installation and functioning of the solar system prior to the installation: Ensure that the approved installer has the necessary insurance policies in place, should damage to your building occur during the installation process. An example of such a policy is a so-called ‘Contractors All Risk Insurance policy’. Upon request, the installer must provide proof of such a policy to you.
Obtain a signed-off electrical installation certificate of compliance (CoC) confirming that your installer has complied with the code of practice for the wiring of the premises: It is essential to obtain a certificate of compliance (CoC) when installing solar power systems, as this is a legal requirement as well as a requirement for the registration of the solar power system with your relevant municipality.
Perform a due diligence on your selected installer: To avoid risks such as fire and explosion brought on by a non-compliant or sub-standard installation, it is important that you conduct thorough research on your chosen installer to confirm their expertise and compliance with regulations. Verify installer registration by checking the Electrical Conformance Board to ensure your preferred installer is registered and compliant.
Update your insurance policy to insure the installed system: Solar or any other energy solution systems are valuable assets to be insured. Keep in mind that certain documents as indicated will be required during the insurance application process.
Contact your PSG Adviser/Insurance Broker if you upgraded your property with a solar or any alternative energy solution system, to obtain advice on whether you only need to increase your building insurance sum insured, or need to take out any alternative cover that better suits your individual needs.
Author: Technical Advisory Services, PSG Financial Services