Solar panels, your roof and home insurance

SOLAR POWER ON THE ROOF TOPS

More and more people are looking into solar power as an alternative energy source. The government is funding programs as an incentive to attract people, companies will offer amazing deals and it all seems environment friendly and so profitable too … a win-win opportunity that you cannot just pass on.

I am not debating whether or not the solar power is a good option. My only intention is to bring few points for your consideration before making up your mind.

Your solar panels and your roof:

1)      Shingles’ warranty: Manufacturers will void the warranty when you have solar panels installed on their shingles. The solar panels shorten the shingle’s life time.

2)      Roofing contractor’s warranty: Most roofing contractors in the GTA will provide a 10-year warranty on their labor. A recurring condition to this warranty is that no repairs, alterations or any other type of work performed by other professionals, except for the roofing company you’ve hired, will   void   the   labor   warranty. So having technicians installing solar panels on your roof will probably void the contractor’s warranty.

3)      Solar panels service requests: Service calls may not be free of charge so it’s important to find out if the company charges for service and if so how much, and what’s their availability as well. You could be surprised by the service fee you would be facing if you need them to remove and install back the panels if you need to replace your roof.

Your solar panels and your home insurance:

Before you go ahead and get the guys on your roof installing the solar panels an important step is to call your agent/broker and let them know about your plans. Each insurance company will have its own underwriting conditions and what one is willing to insure not necessarily will be insured by another.  If you are happy with your insurance provider and wouldn’t want to insure your home elsewhere make sure you get a check list stating which documents and certifications you will need from the company installing the solar panels in order to keep your policy in force. It’s very simple, just follow your agent’s guidance.

Your insurance premiums may increase because now you have an “addition” to your home which is worth a certain amount of money, increasing the total value you are being insured for. In case of a loss you will be reimbursed for this loss, hence the premium increase. Make sure you talk to your accountant about it because part of your insurance premium can be reimbursed.

Bringing it all together, there are some important points to consider before installing solar panels on your roof:

·         How many more years will my roof last? If you have 2-3 more years only you could consider replacing it before installing the solar panels and saving on the service fee to have it removed and re-installed.

·         Which type of shingles do I have? Life time shingles are manufactured to last around 50 years. If you have to replace your roof before installing solar panels you should consider the type of shingles you are installing.

·         Am I prepared to lose the warranty on my roof? Both the manufacturer’s and the labor warranty will probably be voided.

·         Do I have proper guidance from my insurance provider on how this could affect my home insurance? Make sure to get a check list.

·         Are the solar panels for personal use only or will you be selling the energy? If you are selling the energy than you will have a taxable income. You can deduct expenses against the income including house insurance, maintenance costs, loan interest and depreciation of the equipment. Your accountant would be able to let you know exactly which expenses you can claim against the income of the solar panels.  

I hope this article will help you along the process of getting the solar panels you want. If you have any questions, please feel free to contact me.

Thank you and keep shining!

Paola

Auto insurance is changing effective June 1, 2016

A new provincial measure is attempting to avoid uninsured drivers on the roads. Driving without insurance is illegal; a minimum $5,000 fine on conviction is the penalty. Roughly 2,100 uninsured vehicles are involved in collisions on Ontario roads every year. Some of those collisions are fatal. All are costly.

Effective June 1, 2016 the mandatory accident benefits coverage included in every auto insurance policy in Ontario is going through some changes. The reason behind it is to lower the cost of insurance for the policy holder and consequently allow more drivers to purchase auto insurance.

Financial Services Commission of Ontario (FSCO) recommends that you do four things to make sure you understand how these changes will impact you:

·   Read the "Important Changes to your Policy!" document that came in your renewal package. See if the changes reduce or eliminate something that was important to you, and if so what you can do about it.

·   Compare the new policy to your current policy to see what changes have been made. Remember, if you have benefits from your employer or another policy, you may already have some level of coverage for some or all of the changes made. You should consider these benefits as you review your coverage options.

·   Understand your policy. Call your insurance representative and ask questions, or do some additional reading, to make sure you understand auto insurance or what a coverage means. Make sure you know what options are available to increase or purchase other benefits, or to reduce premiums by increasing deductibles or taking advantage of discounts.

·   Shop around. There are many insurance companies competing on price and service in Ontario, and you should make sure that you compare at least three quotes for the same coverages before making a decision. You may purchase a policy through a licensed insurance broker, insurance agent or from a direct writer. There are many ways to save on auto insurance.

Most significant changes:

Benefit	Current Policy	New Policy	You can choose
Medical and Rehabilitation for non-catastrophic injuries	$50,000	These benefits have been combined and reduced to $65,000total ​	Increase the benefit to $130,000 total ​
Attendant Care for non-catastrophic injuries	$36,000
Medical and Rehabilitation for catastrophic injuries	$1,000,000	These benefits have been combined and reduced to $1,000,000 total ​	An additional $1,000,000 for a total of $2,000,000 for catastrophic injuries ​
Attendant Care for catastrophic injuries	$1,000,000
Medical, Rehabilitation and Attendant Care, all injuries	​Not applicable	Not applicable	Increase the combined non-catastrophic benefit to $1,000,000 and the combined catastrophic benefit total to$2,000,000

Other Optional accident benefits (OAB)

Benefit/Coverage	Current Policy	New Policy	You can choose
Income Replacement benefit	70 per cent of gross income up to $400 per week.	No change	To increase the weekly limit to $600, $800 or $1,000 per week.
Caregiver benefit	Available only for catastrophic injuries: Up to $250 per week for the first dependant plus $50 for each additional dependant.	No change	To make the same amounts available in current policy for catastrophic injuries available for all injuries.
Housekeeping and Home Maintenance expenses	Available only for catastrophic injuries: Up to $100 per week.	No change	To make the same amounts available in current policy for catastrophic injuries available for all injuries.
Death and Funeral benefits	$25,000 lump sum to an eligible spouse; $10,000 lump sum to each dependant; maximum $6,000 funeral benefits.	No change	$50,000 lump sum to an eligible spouse; $20,000 lump sum to each dependant; maximum $8,000 funeral benefits.
Dependant Care benefit	Not provided	Not provided	To purchase this benefit and add up to $75 per week for the first dependant and $25 per week for each additional dependant to a maximum of $150 per week.
Indexation benefit	Not provided	Not provided	To add an annual adjustment for inflation for many benefits according to the Consumer Price Index for Canada to your policy.
Third Party Liability	$200,000 minimum for claims as a result of lawsuits against you.	No change	Options exist to increase the minimum amount.
Tort Deductible	$36,905.40 deductible for court awarded compensation for pain and suffering (Jan 1-Dec 31, 2016).	No change	Reduce deductible by $10,000 regardless of annual indexation percentage increases.

Click here to access the full article and view more detailed information about the accident benefit changes in coverage June 2016.