Commonwealth_ Adam Szabo, a resident of Burlington, Ontario, was enthusiastic about replacing his furnace with a heat pump and installing solar panels to power his new electric heating system and electric car. For Szabo, the benefits were clear: it would increase the value of his home, help reduce his carbon footprint, and provide financial gains in the long term.
“It improves the value of the house, it’s better for the environment, and there’s a financial gain as well,” Szabo shared. Living with his wife and nine-year-old daughter in a semi-detached home, he was confident that his shift toward greener energy solutions was a win-win.
However, Szabo encountered an unexpected roadblock that threatened to derail his eco-friendly transition to his home insurance provider. To his surprise, his insurance company, CAA, did not share his optimism about his new installations. Initially, CAA nearly cancelled Szabo’s home insurance due to the installation of the heat pump. Later, they fully cancelled his policy because of the solar panels.
The Growing Dilemma of Green Technology and Insurance
Szabo’s experience is not unique. Across Canada, as more homeowners adopt cleaner energy technologies such as electric vehicles (EVs), solar panels, and heat pumps, some are encountering unexpected resistance from their home insurance providers. Despite the increasing push toward renewable energy to mitigate climate change, insurance companies seem unprepared to handle these changes, creating confusion and frustration for homeowners.
Szabo was just one of several individuals who reached out to CBC News to share their experiences with insurance complications after installing solar panels. Each homeowner had different insurers, but none had been warned that installing solar panels or other green technologies could pose a problem for their home insurance coverage.
For Szabo, the journey of going green quickly turned into a headache. His enthusiasm for renewable energy was met with hesitation from his insurer. He worries that if these issues persist, it could discourage other homeowners from embracing cleaner technologies, ultimately undermining broader climate goals.
“I even contacted my local MP about it because it goes against the federal government’s climate objectives,” Szabo said. “The government is promoting net-zero emissions by 2050, offering incentives to encourage people to transition, but how can we do that if we can’t get insured?”
Uncertainty Around Green Technology
One common issue homeowners like Szabo face is the perceived uncertainty around newer technologies like solar panels and heat pumps, even though these technologies have been around for decades. Solar panels, in particular, have seen a resurgence in popularity as costs decrease and efficiency improves, yet some insurance companies treat them as if they were new and untested. Szabo was told by his insurance provider that they were unsure how much it would cost to insure solar panels. This explanation came as a shock to him, considering the widespread use of solar energy systems. “Solar panels have been around for decades. It just doesn’t make sense that they would treat it as something new,” Szabo said.
Dealing with the insurance company was an arduous process. Szabo managed to convince CAA to keep covering his home after providing extensive specifications for his heat pump and backup system. Yet, despite his efforts, the solar panels remained a dealbreaker. CAA eventually cancelled his home insurance because of them.
The Need for More Awareness and Flexibility
Home insurance experts, such as Aaron Sutherland, Vice President of the Insurance Bureau of Canada (IBC), suggest that homeowners should not assume their insurance will automatically cover modifications like solar panels or heat pumps. He advises consumers to communicate with their insurers before making significant changes to their homes.
