Lean and green with renewable energy solutions – but are you adequately insured?

Lean and green with renewable energy solutions – but are you adequately insured?

More South Africans are opting for renewable energy solutions in order to save on electricity costs. These solutions are expensive however, so it is important to adequately insure them.

As South Africans brace for yet another hyper inflationary increase in the electricity price from next year, many savvy consumers are opting to go the green route by investing in renewable energy solutions such as solar water heating, solar PV systems for electricity generation and wind turbines. It’s a wise move when one considers that coal-fired electricity costs in South Africa have rocketed at over 500% since 2007, and consumers could be facing another 20% increase in April 2018.

“Green energy solutions can radically reduce your spend on and consumption of grid electricity, which not only makes a big difference to your pocket, but is a meaningful way to live a greener and more sustainable lifestyle. They also represent a significant financial investment, so it’s essential to have these fixed green assets correctly insured under your buildings insurance policy,” explains Deanne van Doesburgh from Hollard.

Hollard offers a ‘Renewable energy equipment’ optional benefit to your existing Hollard buildings insurance policy which provides cover for these green assets, which include solar geysers, solar photovoltaic (PV) panels and wind turbines.

“The equipment is specified under your buildings cover, with a sum insured equal to its replacement value. A separate premium based on this sum insured is then charged for the ‘Renewable energy equipment’ benefit. Considering that these energy solutions can save you a lot of money and have a working lifespan in excess of 20 years for the likes of PV systems, they are invaluable assets that warrant the added scrutiny when it comes to insurance and managing your risks. Under this optional benefit, the renewable energy assets would be covered for any loss or damage caused by an insured event listed in the buildings section of the policy,” explains Deanne.

Another invaluable benefit available from Hollard, included in the optional ‘Home improvement bundle’, is that of ’Green building cost cover’, which covers you for the installation of green building products when it comes to replacing an item covered under your buildings policy.

A green building product is considered as a suitable replacement if it meets the recognised industry standards in the following ways:
• use of less energy, water or natural resources;
• creation of less waste; or
• providing a healthier environment.

Here’s a simple example to illustrate

Your conventional electric geyser pops its valves and needs to be replaced as it cannot be repaired. As an energy savvy consumer, you would prefer to replace it with a solar geyser instead. You wisely opted to pay a small additional premium for the ‘Home improvement bundle’ on your buildings policy, which means Hollard will pay in the extra cost to upgrade your old electric geyser to a new solar geyser.

“Hollard embraces new technology that allows our clients to reduce their impact on the environment and while they are at it, put some hard earned savings back in their pocket. It makes absolute sense for us to support the move to renewable energy equipment by making sure that our insurance offerings support a changing energy landscape, and that our clients have the peace of mind that their investments into renewable solutions are appropriately and comprehensively covered,” concludes Deanne.

Article from privateproperty