Monday, 13 June 2016

Can solar panels be covered by Home Emergency insurance?



This exclusion is almost universal in the Home Emergency market although more recently I noticed a product that doesn't have it. Unusual! While the exclusion was originally introduced in the dark old days when solar panels were a rare sight and our homes were heated by gigantic old gas boilers that were big enough to live in, it was fair to argue that the exclusion was needed because specialism in the new solar technology was thin on the ground and a national service network that was able to respond 24/7 at a reasonable price would have been difficult to source.

Encouraged by Government subsidies the "growth of solar" has led to a rapid increase in the number of solar engineering firms springing up making the original reason for the exclusion redundant. Moreover recent reduction of the subsidy has resulted in a slow-down from which I infer that there is probably plenty of 24/7 capacity in the market……. BUT……

the initiated will know that solar panels provide an alternative source of energy and plug into a feed-in tariff. So should all panels fail at once or more realistically should we have a Scandinavian winter where there is very limited sunlight to generate energy, the home will still run on the mains. Hence no interruption of power = no home emergency.

Solar panel providers/installers invariably provide a dedicated helpline for customers to report problems with panels where all issues can be reported and call outs arranged.


Conclusion - For Home Emergency cover the failure of solar panels is a "non-risk" as the customer's home and hot water supply can be powered by energy fed from the national grid. We think this is an example of when "more is less" and have no plans to remove the exclusion from our Home Emergency policy wordings.


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