Solar panels and fire: which insurance covers what?

In large-scale fires involving solar panels, the unburned remains can sometimes be scattered for miles. The impact and cleanup costs are determined in part by the type of area where the substances come down. But which insurance actually covers what? And exactly what is not covered?

Fire Insurance

With the advent of the new exchange fire conditions (VMZB 2021), coverage for cleanup costs has been expanded. It is explicitly stated, albeit in the notes, that coverage also includes “the cost of ‘underground cleanup,’ that is, the necessary remediation of the soil because (environmentally hazardous) insured items (or parts thereof) have ended up in or on the soil.”

But with this coverage, we are not immediately there. Important areas of concern remain:

Solar panels must be co-insured on the fire insurance policy since cleanup costs only apply to insured items;
The cleanup costs in the policy terms apply not just to solar panels but to ALL insured items that need to be cleaned up. So it is important to check that these are adequate!

Extra attention should be paid to solar panels on roofs that are not owned by the rig owner. Clearance costs will be reimbursed only if it involves the clearance of insured property. This means that with third-party solar panels, your own fire insurance does not come into the picture. However, a discussion may arise around the issue of nativity. Indeed, legally speaking, the solar panels may have become part of the property and therefore do fall under this insurance. Avoid this discussion by raising this issue and finding the right insurance solution in consultation with your advisor.

Liability Insurance

It is possible that as a result of a fire and subsequent contamination, third parties suffer some form of damage. Liability must be established. The assessment of whether an insured is liable is usually based on two articles of law: Section 6:174 of the Civil Code (building does not meet the requirements that may be made of it under the circumstances) and/or Section 6:162 of the Civil Code (tort).

Determining liability in a fire situation is no easy task. Thus, a tort in the sense of culpable acts or omissions is not easily established. Of course, other legislation can be looked at as appropriate. If liability were to be established, it should be investigated whether there is coverage on a business liability insurance policy. For example, there must be property damage or personal injury in accordance with the policy terms.

Environmental damage insurance

In the case of fire and spreading solar panel debris, environmental damage insurance presumably will not pay out because no government standard has been exceeded. Even environmental damage insurance from any local residents will not pay out (source consulted: A-Actuals program NIBE-SVV).

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Contact Rick Kooij or email us: corporaterisk@krollerboom.nl.

This article is posted by Rick Kooij. Manager Corporate Risk & Partner

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