Transforming Home Insurance: The Rise of the Home Energy Revolution

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

The adoption of home energy systems introduces new risk considerations, including potential economic losses from the necessity to procure alternative energy sources if systems are damaged and the complex logistics of accessing specialized repair services. Insurers are urged to refine their supply chains to handle components such as panels, inverters, home batteries, chargers, and smart meters effectively. They must also reassess how cash settlements are computed to address these novel risks, with additional consideration for third-party liabilities.

By 2035, product disclosure statements will likely incorporate clauses specific to home energy systems, suggesting a need for well-defined maintenance requirements. Optional covers might emerge, addressing accidental damage with provisions similar to current offerings, like temporary accommodation coverage when energy-related outages render a home uninhabitable.

Key questions highlighted by Finity include whether the home energy system should be explicitly covered under home building policies and if the insured sum should account for total energy system replacement. Additionally, there is an emphasis on the necessity for homeowners to disclose details regarding their energy systems during policy inception or renewal, ensuring accurate risk assessment and coverage.

In the aftermath of damage to energy systems, relying on the retail grid could incur significant expenses due to the reduced number of shared users. Finity hints at the development of an electric insurance policy to potentially mitigate retail market fluctuations, thus providing a financial safeguard.

Insurers also play a pivotal role in advocating for sustainable choices, such as replacing damaged gas-powered water heaters or vehicles with electric counterparts. This shift not only supports emission reduction goals but also exemplifies how the insurance sector can influence household decisions towards adopting zero-emission technologies.

Published:Thursday, 17th Jul 2025
Author: Paige Estritori

Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.

Share this news item:

Insurance News

Clear

Respect@Work Duties Are Becoming a Professional Risk Issue

12 Aug 2026: Paige Estritori

Fresh attention on how Australian businesses put Respect@Work obligations into practice is a timely reminder that workplace conduct risk is no longer confined to HR manuals or internal training sessions. For consultants, advisers, compliance specialists, accountants, lawyers, recruiters, trainers and outsourced business support providers, the growing focus on prevention can also create a sharper professional liability exposure. - read more

ASIC Breach Reporting Trends Put Professional Risk Back Under the Microscope

04 Aug 2026: Paige Estritori

Following recent complaints data, fresh industry attention on ASIC’s reportable situations regime is another reminder that professional risk rarely appears without warning. Breach reporting, client complaints, remediation delays and internal control failures can all become early indicators of a larger professional indemnity exposure, particularly for firms that provide financial advice, credit assistance, compliance support, accounting, consulting or outsourced professional services. - read more

AFCA Complaints Data Sends a Clear Risk Signal

28 Jul 2026: Paige Estritori

Fresh complaints reporting from the Australian Financial Complaints Authority has given professional service firms another reminder that client dissatisfaction can become a serious balance sheet risk long before it turns into formal litigation. While the headline numbers are most closely watched by banks, insurers, superannuation trustees and financial advisers, the lesson is broader for any business that sells expertise, advice or technical judgement. - read more

New APRA Data Highlights a Split Professional Indemnity Market

21 Jul 2026: Paige Estritori

Fresh analysis of APRA’s latest National Claims and Policies Database has added useful detail to the current professional indemnity insurance conversation. The database, released in early July 2026, covers professional indemnity, public liability and product liability policy and claims information, giving insurers, brokers and business owners a clearer view of how different parts of the liability market are moving. - read more

Softer Professional Indemnity Pricing Creates a Timely Cover Check

14 Jul 2026: Paige Estritori

Fresh July 2026 market commentary suggests Australian professional indemnity conditions have moved further into a buyer-friendly phase, with stronger insurer competition and available capital placing downward pressure on premiums. For consultants, advisers, accountants, IT providers, designers, engineers and other service-based businesses, this may create a useful renewal window. However, the key message is not simply that cover may be cheaper. It is that businesses should use the softer market to improve protection before conditions change again. - read more

Click for more Insurance News