Living off the grid – What does your insurance cover?

With rising utility costs continuing to put pressure on South African households, many homeowners are taking matters into their own hands by investing in sustainable home upgrades. From solar panels and battery backups to greywater systems, rainwater tanks and gas appliances, these eco-friendly installations offer greater independence and reduced environmental impact. However, as Leruo Malumo, Head: Product Strategy Development & Governance at Santam warns, standard homeowner policies may not automatically cover these new eco-installations.

“Homeowners' policies may differ in how they define your buildings,” says Malumo. “Some may include battery systems, while others may require that these be specified as fixed machinery. That’s why it’s important to understand exactly what your policy includes – and what it doesn’t.”

What to check in your policy

If you’ve recently added any off-grid systems to your home, Malumo says a review of property insurance may be necessary. “Off-grid infrastructure can significantly increase the value of your home. It’s important to ensure that the amount for which your property is insured reflects these additions, so you’re not left underinsured in the event of a claim.”

Documentation is also essential. Since off-grid systems are often tailored to each household’s specific needs, Santam recommends keeping a record of all invoices, the technical specifications of the system, and the details of who installed it, as well as an electrical certificate of compliance (CoC). This information can be crucial in the event of a claim.

Additional risks of eco installations

While the shift to clean energy has many benefits, it’s not without its complications. “Solar panels and battery systems are integrated into a home’s electrical system,” says Malumo. “If the installation has faulty wiring or isn’t properly grounded, this can result in an electrical fire.”

There are also structural risks. Solar panels add weight to your roof, and if your roof structure isn’t strong enough, both the panels and the roof itself could be damaged.

Theft and vandalism are additional concerns, especially as solar installations and lithium-ion batteries are high-value items. Insurers may require a physical inspection by an assessor before settling a claim and will generally expect a police case number to be provided.

Tips for SA homeowners going green

While off-grid homes are generally insured like standard residential properties, Malumo says there are steps homeowners should take to avoid shortfalls in cover:

• Use an installer who is accredited by a recognised industry body
• Keep records of the technical specifications and invoices for all components
• Notify your insurer as soon as the installation is complete
• Make sure your insured value reflects both the building and the new systems
• Request that high-value off-grid infrastructure be noted separately on your policy, if necessary

Going off-grid is a powerful step toward sustainability and self-reliance, but insurance gaps can put your investment at risk. This World Environment Day, Malumo is encouraging all eco-loving homeowners to review their policies and speak to their brokers to make sure their green homes are properly covered. “Insurance should be part of your upgrade planning, not an afterthought,” he concludes.