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We initially installed solar panels on our roof in 2011. We have always maintained and/or repaired them ourselves. This includes taking them off and replacing them around four years ago when the complex was re-roofed. Up until now the question of insurance has never been raised as we assumed it would be our responsibility. This year, the insurance policy has noted that solar panels are included and the other three neighbours are complaining that they shouldn’t have to contribute to that cost. As I assume we cannot take out our own building insurance, and they’re not included in Contents insurance what are our options here?
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Section 82 of the NSW Act allows an owner to be charged differently for insurance if their use of their lot means the insurance premium for the strata scheme is higher.
S82 (2) Individual contributions may be larger if greater insurance costs(1) If the use to which a lot in a strata scheme is put causes an insurance premium for the strata scheme to be greater than it would be if it were not put to that use, so much of a contribution payable by the owner of the lot as is attributable to insurance premiums may, with the consent of the owner, be increased to reflect the extra amount of the premium.
So you could ask the insurer what portion of the insurance is attributable to your solar panels, or you could use your last premium as a guide (although the former amount will probably be less) then ask your treasurer or strata manager to adjust everyone’s strata fees to allow you to pay more and your neighbours to pay less, citing Section 82.
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Most strata insurance policies include a substantial amount for ‘lot owner improvements’. Ours covers $250,000 worth. This will cover units that have added a bigger or better air conditioner or fancy kitchen fittings etc. The solar panels are not making any difference to the cost of the insurance policy. They are just noted because they are an alteration that has been notified.
Even when our OC spent $40K on a large communal solar system over a decade ago (they were more expensive then), we notified the insurer and they did not require any change to the premium.
Sounds like you have some charmers on your EC – the kind who don’t think anyone should have anything they don’t have. Just write them a polite letter inviting them to show how the existence of the solar panels is affecting the insurance premium and you will pay the difference. And send them info on how they could have solar panels too.
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It doesn’t matter what the EC thinks should be covered. The panels are a fixture and must therefore be covered by the strata insurance, whether they like it or not. The same goes for another lot owner’s gold-plated bath tub or fancier-than-usual installed wall oven.
I’ve read through the responses and it sounds possible that the panels might not contribute to the insurance premium. Bear in mind though that if you make a claim (let’s say your panels are damaged in a storm), the premiums will go up and the conversation will open up again.