The Green Deal and home insurance

The long-awaited Green Deal has finally started, offering homeowners and landlords the chance to make their properties more energy efficient.

The aim is to fund the improvements from cutting energy bills, so in many cases the utility bills stay the same while the saving pays off the cost of the improvements.Improvements include:

•             Loft and wall insulation

•             Draught proofing

•             Replacement doors and windows

•             Upgrading or installing boilers and central heating

•             Installing solar panels for heating water

Insurers are encouraging homeowners to embrace the Green Deal and have issued a statement to clarify how home insurance will cover any energy efficiency improvements.

Jonathan Cracknell, household underwriting manager at Aviva, offered some hints and on how the cover works.

“Aviva home insurance will automatically cover solar panels as part of its standard buildings policy. Customers just need make sure they include the value of the Solar Panels in the overall sum insured. If solar panels are shared between properties, they are still covered, but if they are damaged we will only pay the customer’s proportion of the claim.

“The principle is the same for wind turbines on roofs or in the garden; they would be considered part of the buildings of the property”

Installing Loft Insulation/Cavity Wall/Double Glazing will not increase home insurance costs – but could help reduce claims for damp.

Similarly, replacing an old boiler should lessen the risk of leaks or breakdowns.

“Occasionally we see Eco-friendly constructed homes, most often sedum or turf roofs,” he said. “We are happy to insure these properties; we would just need to understand a bit more about their type of construction and materials used so we can assess their individual risk. Green roofs give good insulation benefits, are low maintenance and generally more resilient to storm damage and heavy rain.

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One Response to The Green Deal and home insurance

  1. NA says:

    Great article. Hope this green deal stuff takes off!!

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