How does Allianz Germany contribute to climate protection and to the move to alternative energy sources in general?
Susanne Schiller: We support our private customers for instance by including physical loss or damage to their photovoltaic systems within the scope of our residential buildings insurance without a surcharge. After all, by installing solar power systems customers make a genuine personal contribution to climate protection and the move to alternative energies. Last year, in Germany enough electricity was generated through solar power to cover the annual electricity needs of approx. 5.2 million households.
But don't private households in particular take on a high financial risk to support CO2 reduction?
During their life cycle photovoltaic or solar power systems face numerous hazards. The majority of physical loss or damage is due to fire, storm, electrical surges and snow pressure. But technical damage can also severely impact complex photovoltaic systems. To ensure the investment is worth it, it is key for these systems to function smoothly without any faults.
But there is another financial risk: liability. Homeowners may be faced with high liability claims if, for instance, parts of the system fall off the roof because they have not been sufficiently secured and cause injury to pedestrians.
What can customers do to protect themselves against this kind of loss or damage?
Customers can take a range of preventative measures. For instance, they should select an appropriately qualified company to install the system and protect components or spare parts against theft by storing them in a locked building. It is essential for customers to be appropriately instructed about all functionalities of the system by the person who installed it. As far as day-to-day operation is concerned, functionalities need to be checked, the system needs to be maintained regularly and visual inspections are essential to identify faults and guard against major damage. Naturally, proper prevention also includes appropriate insurance.
And what kind of insurance does Allianz Deutschland offer to homeowners with solar power systems?
Starting from the installation we provide individual cover for almost all events and their consequences. The residential buildings insurance currently offered by Allianz includes loss or damage to photovoltaic systems caused by the same hazards for which the building is covered. If customers would like cover beyond these hazards, they can opt for the All Risk component "extended cover for solar power/photovoltaic systems", which also provides comprehensive cover for loss or damage incurred due to unnamed hazards. For instance, if measuring devices, control units or security devices fail or if a short circuit, excess current or excess voltage and construction faults cause significant defects. Theft and vandalism are further hazards. If a third party is injured by the solar power system, for instance if a part falls off the roof during a storm, then the personal liability cover of Allianz comes into play.
Many homeoners not only save on their own electricity costs by installing solar power systems, but also feed part of the electricity into the public grid. Is this something that needs to be especially considered from an insurance perspective?
Indeed, because in this instance customers act as a kind of entrepreneur. If operators of photovoltaic systems supply excess electricity to the public grid, this generates revenue. So if the system breaks down, customers can incur a loss of revenue. This is why both private residential buildings insurance as well as the All Risk component include loss of income cover caused by a loss event. Customers will receive compensation irrespective of how intensively the sun shone on the day of the insured event. From the point of view of the law, supplying electricity to the public grid constitutes an entrepreneurial activity. This entrepeneurial risk is also included in the scope of cover of the private liability insurance we currently offer.
So with Allianz's help private customers, too, can make a decisive contribution to the move to renewable energy...
Our insurance cover provides protection for our customers who do not simply want to join in the debate, but who actually want to do something. Our customers will only consider alternative energy sources if they feel that they are protected against the financial risks of loss or damage to or caused by their solar power system. By the way: in the event of a claim, we provide speedy assistance beyond simple monetary help, by organizing repairmen quickly and affordably.
