Insurance companies in South Africa are likely to honour your claim if your solar power installation is damaged by lightning — even on multiple occasions — provided specific protection measures are in place.
These include using lightning arrestors and surge protectors and installing your solar or equipment through an accredited service provider.
MyBroadband reached out to Auto & General, Elite Risk, Hollard, and King Price for insight into how such installations would impact insurance claims, even if they are damaged multiple times.
We created a hypothetical scenario where lightning damaged a solar installation on multiple occasions to determine what homeowners would need to do to avoid getting their cover cancelled.
Auto & General Insurance head Ricardo Coetzee told MyBroadband that insurers might require that you install protective equipment.
“They say that lightning never strikes twice but this, unfortunately, is a myth,” he said.
“If your solar panels are repeatedly struck by lightning, lightning arrestors, a strike termination device and/or surge protectors should be installed and may specifically be required by your insurer to provide cover.”
He added that it is essential to ensure that your solar panels are installed by a qualified technician, meet the technical regulations, and are properly maintained.
Elite Risk managing director Tarina Vlok said the company would honour such claims, but rates could increase in lightning strike prone areas.
“All domestic policies cover lightning strike damages, and the Elite policy will certainly honour those claims,” she said.
“The concern with your scenario is that the area in which this risk is situated, is a high-risk area for lightning strikes.”
Vlok explained that Elite Risk’s actuarial models consider such risk factors. Using historical data, the client in this situation would likely be subject to a higher rate under their property sections to compensate for the risk.
She added that even protection devices such as lightning conductors would need to be installed in accordance with the relevant regulations.
“The client in your scenario did everything they could to mitigate the lightning risk, on condition, of course, that the lightning conductor was installed in accordance with regulations as determined by the SABS.”
Hollard’s head of product development for personal lines, Deanna Bezuidenhout, explained that surge protectors would affect your excess.
“[Surge protectors] will not only lower the risk of losses, but also decreases the likelihood of having to pay an insurance excess due to repeated lightning strikes, electrical faults or power surges resulting from load-shedding,” she said.
King Price client experience partner Wynand van Vuuren said that lightning prone buildings, such as those with thatch roofing, would likely need a lightning conductor to be installed to keep cover in place.
Recommendations
Elite Risk and King Price also provided recommendations to ensure that your installation is compliant and that you won’t run into any issues when submitting a claim.
- Ensure that your installer — whether for solar or gas installations — is reputable and preferably accredited by your insurer. Your insurance policy might exclude faulty installations by non-accredited service providers and damage as a result thereof.
- Such installations increase the property’s value and should be included in your insured amount. Contact your insurer and inform them of this. Ask your broker or insurer if you have full cover for solar installations, especially the panels.
- Ensure to protect any installation with surge protection devices. Lightning protection in high-risk areas contributes significantly to reducing the risk of lightning strikes.
Main Image: If Insurance
