Do I Need to Tell My Insurer About My Home Battery?

Installing a home battery is an exciting step towards energy independence, but it’s also a significant modification to your property. For an insurance company, any major change to your home is important information.

Think of it like a major renovation. A home battery adds substantial value to your property, meaning the cost to rebuild or replace your home has increased. Your insurer needs to know this to ensure your sum insured—the maximum amount they will pay out—is high enough to cover the new system in case of an incident like a fire or storm.

More importantly, insurers assess risk. While modern, professionally installed batteries are very safe, they introduce new electrical systems and components to your home. Your insurer needs to understand this change to your home’s overall risk profile to ensure your policy remains valid and provides the right protection.

How will a battery affect my insurance policy and premiums?

For most Australian homeowners, adding a compliant solar battery system to an existing policy is straightforward. Here’s what you can generally expect:

• It’s usually covered under building insurance: Because a battery is a permanent fixture, it typically falls under your building insurance policy, not your contents insurance.
• Your premium will likely see a small increase: You should anticipate a slight rise in your premium. This isn’t a penalty; it simply reflects the increased value of your home and the cost to replace the battery system if it were damaged. The increase is usually modest and is a worthwhile cost for ensuring your investment is protected.
• Your insurer will require key details: Be prepared to provide information about your system, including the total cost, brand and model, capacity, installation date, and proof of professional installation.

Some people worry that insurers view batteries as high-risk and will penalise them with high premiums. However, this is largely a misconception. As long as your system is from a reputable brand and installed by an accredited professional according to Australian Standards, insurers are generally comfortable providing cover.

What are the risks of not telling your insurer?

Failing to notify your insurer about your battery installation is a significant gamble that could have severe financial consequences.

For consumer insurance contracts, which include home and contents insurance, you have a duty to take reasonable care not to make a misrepresentation. This legal standard, which applies to policies started or renewed since October 2021, means you must answer your insurer’s questions honestly and accurately. Providing incomplete or false answers is a misrepresentation. A home battery system is a significant modification that would be a key part of the questions an insurer asks when you apply for or renew a policy.

If you don’t tell them and an incident occurs—even one not directly caused by the battery—your insurer could argue that you failed in this duty. This may give them the right to reduce or deny your claim entirely. If a fire were linked back to an undisclosed battery system, it would almost certainly jeopardise your claim, potentially leaving you with devastating financial loss.

Key steps to ensure you are properly covered

Taking the right steps from the beginning will give you peace of mind that your home and your new energy asset are protected.

Use an accredited installer

This is non-negotiable. Always use an installer accredited by Solar Accreditation Australia (SAA). As of 29 February 2024, SAA is the sole government-recognised body for accrediting solar and battery installers. Using an SAA accredited professional is often a requirement for government rebates and ensures the system is installed safely and to Australian Standards (specifically AS/NZS 5139 for battery installations). An installer should provide you with a Certificate of Compliance for Electrical Work (CCEW) after the job is complete. This document is crucial for both warranty and insurance purposes.

Choose compliant and reputable products

Select a battery from a manufacturer with a strong presence and support in Australia. Crucially, the battery, inverter, and other major components should be on the Clean Energy Council’s (CEC) approved product list. Using CEC-approved products is a key indicator of quality and safety, and is often a prerequisite for state and federal government incentives. High-quality systems from brands like Sungrow, which offer robust hybrid inverters and battery solutions, are designed with advanced safety features like integrated Battery Management Systems (BMS) to meet strict Australian safety standards. This compliance is a key factor insurers look for.

Contact your insurer before or immediately after installation

The best time to have this conversation is before your system is installed, but immediately after is also acceptable. Provide all the necessary documentation, including the make, model, and the installer’s details. Ask them to confirm in writing that the battery system is covered under your policy and that your sum insured has been updated accordingly.

Keep your documentation safe

Store your invoice, warranty documents, and the Certificate of Compliance in a safe place. You will need these if you ever have to make a claim.

A final word of reassurance

The process of informing your insurer about a new home battery is a standard part of responsible homeownership in Australia. It’s not something to be feared but rather a crucial step to protect your investment. By choosing a quality system and a certified installer, and by being transparent with your insurance provider, you can enjoy the benefits of your home battery with confidence and complete peace of mind.