Solar or other home upgrades? Don't forget to update your insurance cover
Category Property Tips
One of the fastest growing housing trends in the country is the addition of alternative power solutions, from gas stoves and geysers to solar and inverters as a back-up power solution. Many homeowners are going one step further by taking their property completely off the grid.
Homeowners also frequently undertake home improvements, from extending the property to adding new fixtures such as a swimming pool. As a significant financial asset, it is vital that the property is adequately insured against any unforeseen damage.
For example, what happens if your solar panels are damaged by the weather or stolen? Property owners should typically have at least two types of insurance cover, namely homeowners' insurance as well as household insurance (covering the contents of your home). It is important to regularly audit both of these insurances.
Homeowners' Insurance typically covers the fixed structures such as the home, garages, outbuildings, swimming pool as well as fences, walls and gates against damage caused by unforeseen accidents and events. These could relate to flood or fire damage, a burst geyser and so on.
The particular cover will be as set out in your policy document. Property owners should be vigilant about their insurance cover and ensure that the coverage is not only adequate for the property, but that they have advised their insurer of additions or changes to the property which need to be added.
If you have installed a solar and/or inverter system as a power back-up, or perhaps have now taken your home completely off the grid, then you should ensure that this is updated on your insurance policy, or extra insurance cover taken. These systems are costly. Think for example what happens if your solar panels are stolen overnight.
A solar installation becomes part of the building and fixtures on your property, so you can generally insure it against all risks as part of the building insurance. Check with your broker or insurer whether the solar installation is covered in terms of your current policy or whether you need to take extra cover.
While homeowners' policies generally provide theft cover, it may be limited, and you should therefore verify that your solar panels are included in the cover. For example, the policy may exclude cover for theft outside of the building.
You should also ensure that a certificate of compliance (COC) is provided for the installation and that it is done in accordance with the City of Cape Town requirements. See below for more information:
Home is our Story and property our passion. We are now heading into the busier selling season and anticipate an uptick in buyer interest, especially in suburbs such as Rondebosch with its fantastic schools and access to the University of Cape Town.
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Author: Gina Meintjes
