Solar Panels – The insurance advice perspective

[TheTerribleTriplet]

30 March 2023
Office of the Ombud for Financial Services Providers

https://www.fanews.co.za/article/compliance-regulatory/2/fais-ombudsman/1098/solar-panels-the-insurance-advice-perspective/36734

In respect of existing clients, it is vital that any additions and extensions such as solar panels are brought to the attention of the FSP and or insurer, so that the required amendments can be made to the insured value of the homeowners cover. However, just as important, is that FSP’s who receive an ongoing commission must also provide ongoing advice at least once every 12 months. The provision of a revised policy schedule on the policy anniversary with a cover letter, is not considered as providing appropriate advice, as it neglects the needs analysis aspect that will ensure that any changes are identified and provided for. The FSP’s duty to ensure the policy remains appropriate is important to note.

A further important consideration is the minimum requirements of various insurers. Insurers will generally require the solar panels to be installed by a reputable certified provider. There may even be insurers that require electrical installations to be certified by a qualified electrician, and to issue a Certificate of Compliance. Section 7 of the Code requires FSP’s to disclose these important and material disclosures to their clients. Their clients should be placed in a position to make an informed decision and ensure that they are provided the opportunity to comply with any special terms.