Renewable energy sounds like a great way to make some extra money and a way to reduce your monthly hydro bill – but what are the insurance implications?
While homeowners policies specifically exclude income opportunities, your insurance company may insure renewable energy by way of an endorsement. Once you’ve been approved for the microFIT (Feed-in Tariff) or any other renewable energy program, you must contact your insurance broker to arrange the necessary insurance.
There are items to consider when insuring your renewable energy investment as each insurance company has its own requirements and set of rules. For example, some companies will only insure renewable energy if it’s owned and part of the microFIT program; while other companies will accept leasing arrangements. There is also the question of solar panels, wind turbines, bioenergy and waterpower, with each having their own specific rules.
Questions to ask your broker:
When discussing the above with your broker, it’s important to know the amount of kWh (kilowatt per hour) your renewable energy will be creating and your expected income. Your policy will provide ‘loss of income’ coverage if there’s an insurable loss to your system and you’re no longer earning an income. If you’re already approved for microFIT, this information should be provided as well.
In essence, contact us to confirm the renewable energy can be added to your policy, what implications fall on you and how to proceed with your new venture. We will review your policy’s coverages, limits and exclusions to ensure you have the right coverage in place and we will also discuss your arrangement with the insurance company to determine what is required to insure the renewable energy on your policy.