Question: Are solar panels classed as scheme assets and covered by our strata building insurance?
In our small 3-lot strata, solar panels were installed on all lots over the past year. Can you please clarify the following:
- Are solar installations classed as scheme assets, and should they be included in the asset register?
- Does the scheme’s insurance cover solar panels?
- Does our insurer need to be advised of any solar installations?
Answer: If the solar panels are permanent fixtures, they should be covered by the building’s insurance.
Q1: Are solar installations classed as scheme assets, and should they be included in the asset register?
Leanne Habib: If the solar panels are permanent fixtures, they should be covered by the building’s insurance. The by-laws applicable to the scheme will determine who is responsible for the ongoing repair and maintenance of solar panels. If the owners corporation installed the solar panels for everyone, it will usually retain responsibility for ongoing repair and maintenance. If individual owners install the panels, a by-law will usually confer the responsibility on the owner.
Q2: Does the scheme’s insurance cover solar panels?
Tyrone Shandiman: Yes. As they are permanent fixtures, solar panels are covered by the building section of a strata policy. If the solar panels are not permanently attached to the property, they are not covered by strata building insurance.
Leanne Habib: Generally speaking, yes, as they are generally deemed part of the building fixtures subject to the installation. However, you will need to check the policy terms and with the subject insurer.
Q3: Does our insurer need to be advised of any solar installations?
Tyrone Shandiman: It depends on your insurer. At present, we know of only one insurer that specifically inquires about solar panels when quoting. To ensure you’re covered, we recommend consulting with your insurer.
Leanne Habib: We recommend that the insurer is advised of any building improvements to ensure that such improvements are properly insured and covered.
This post appears in Strata News #705
Leanne Habib Premium Strata E: info@premiumstrata.com.au P: 02 9281 6440
Tyrone Shandiman Strata Insurance Solutions E: tshandiman@iaa.net.au P: 1300 554 165
This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.