The adoption of home energy systems introduces new risk considerations, including potential economic losses from the necessity to procure alternative energy sources if systems are damaged and the complex logistics of accessing specialized repair services. Insurers are urged to refine their supply chains to handle components such as panels, inverters, home batteries, chargers, and smart meters effectively. They must also reassess how cash settlements are computed to address these novel risks, with additional consideration for third-party liabilities.
By 2035, product disclosure statements will likely incorporate clauses specific to home energy systems, suggesting a need for well-defined maintenance requirements. Optional covers might emerge, addressing accidental damage with provisions similar to current offerings, like temporary accommodation coverage when energy-related outages render a home uninhabitable.
Key questions highlighted by Finity include whether the home energy system should be explicitly covered under home building policies and if the insured sum should account for total energy system replacement. Additionally, there is an emphasis on the necessity for homeowners to disclose details regarding their energy systems during policy inception or renewal, ensuring accurate risk assessment and coverage.
In the aftermath of damage to energy systems, relying on the retail grid could incur significant expenses due to the reduced number of shared users. Finity hints at the development of an electric insurance policy to potentially mitigate retail market fluctuations, thus providing a financial safeguard.
Insurers also play a pivotal role in advocating for sustainable choices, such as replacing damaged gas-powered water heaters or vehicles with electric counterparts. This shift not only supports emission reduction goals but also exemplifies how the insurance sector can influence household decisions towards adopting zero-emission technologies.
