As South Africans continue to face rolling blackouts, they are looking at alternative energy solutions to keep the lights on.
Many of these are not cheap and consumers wonder whether and how they should get their back-up power source equipment insured.
Sumarie Greybe, co-founder of Naked Insurance, said that whether to insure it under your building insurance or your home contents insurance came down to whether the devices are permanent fixtures to your home or not.
“Anything that becomes a permanent fixture in your home is generally insured under building insurance. Insurers often say that anything that will not fall out of your house if you could turn it upside down is a part of the home, and should thus be added to building insurance,” Greybe said.
Home power solutions that fall under building cover include:
– Fixed solar panels
– A battery system and inverter that is connected to your home’s distribution board (DB) or solar panels
– Generators that are enclosed in a shed or cage fixed to your home or integrated with your DB.
According to Greybe, anything that can be taken with you without the use of a screwdriver or a sledgehammer to separate it from your home is generally insured under your home contents insurance.
This includes portable generators, inverters and batteries, as well as uninterrupted power supply (UPS) units.
Insuring your alternative power sources could be a wise choice because the cost to replace them at a later stage could be more expensive especially when you factor in the cost of installation.
For the people who live in sectional title units, the body corporate or managing agent usually buys an insurance policy on behalf of all owners to cover the buildings.
Greybe said, “Ask them to increase the sum insured for your unit's building cover to explicitly cover your alternative energy valuables.”
If you are renting a renewable energy solution, check with your insurance provider if they will insure the equipment as part of the all-inclusive cost or you will need to cover it under your own policy.
“Bear in mind that insurance won’t cover you for loss and damage due to wear and tear over the years. Be sure to buy a high-quality solution backed up by a five-to-ten-year warranty to get extra peace of mind. It’s also important to maintain your expensive system to keep it in proper working order and prolong its lifespan,” Greybe said.
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