Green is always the answer, right? Looking after our environment, leaving the planet in a better state than we found it, and securing a legacy for the next generation – all makes perfect sense. No one would argue against this, however some of the green initiatives that we have seen implemented for residential properties have led to higher claims. Being an intermediary, and working with both the insurer and the insured, means that we have a holistic viewpoint on the impact some of these initiatives have had on client’s claims history, and below I’ll outline four key areas to be mindful of when thinking about your environmental footprint and the impact they have, from an insurance perspective, on your property.
Lithium-ion Batteries
Found in almost all rechargeable devices, from e-bikes, e-cigarettes through to mobile phones, we all own these batteries and unfortunately, they can lead to a fire or an explosion without warning. In residential properties it means that most tenants will be using, recharging and storing these. The reason for their volatility is down to how they’re made. If the battery cell creates more heat than it can release, it can lead to a release of energy (thermal runaway) which can result in a fire and/or explosion. Gases can often be released when a thermal runaway happens. These can spread, unignited and potentially cause an explosion leading to a secondary fire. The highest fire risk occurs when a battery is being charged, has been damaged previously, overcharged or continually charged. Some measures to prevent this include providing a well-ventilated, external building (separate from your residential building) where tenants can safely charge their e-scooters and e-bikes. Let them also know about the risks of lithium-ion batteries and the merits of storing them in a well-ventilated area and finally we would always suggest that you carry out a robust, fire safety assessment to identify risks and how to mitigate them.
Electrical and hybrid vehicles (EV)
Electrical and hybrid vehicles, which offer lower emissions, are ULEZ compliant* and provide better fuel economy are understandably becoming more popular. The lithium-ion batteries which they run on are not seen as hazardous as the usages mentioned above. Instead, the fire risks associated with EV vehicles normally centres on their installation and usage. Consideration should be given, not only to the installation of charging points which should be carried out by professionals, but also the impact protection to reduce claims for damage whilst reversing and parking. Maintenance is key here too. We have heard of instances where extension leads have been used to charge cars and cables have been stolen for scrap. And there in lies the problem. If these vehicles do catch fire, they burn very differently than a petrol car, and the fires often last for days. As a property manager, this causes various issues for you and your tenants.
Solar Panels
With the advent of government incentives and advances in technology, solar panels are now far more commonplace than a decade ago. However, solar panels, or photovoltaics (PV) as they are technically known, installed on roofs, require ongoing maintenance because of the risks they present.
As they are an electrical system, maintenance is imperative to ensure efficiency and safety as they can be subject to the same electrical faults, short circuits and reverse currents as other electrical systems. So, what should you consider if you have these installed on the roof of your building? Firstly, when they are (or were) installed, the installer should provide you with a PV Operation & Maintenance manual which will outline the requirements for your system. Refer to this, and follow the guidance offered. We have seen cases where panels have not been secured properly and have subsequently blown off in high winds, which results in several issues, most of which are claimable. However, the real issue with solar panels is the fire risk associated with them. They, by their nature, introduce an ignition source. Coupled with the fact they are placed on the roof of a property it makes it very difficult to be tackled by firefighters, which consequently allows it to spread. It also goes without saying that a roof fire can result in a total loss of the building because often PV systems are not equipped with property protection or monitoring systems like sprinklers or detection systems, which means late detection.
The shear weight of the panels can also lead to them overloading a roof. It is estimated that solar panels, cabling and mounting equipment add between 10kg and 20kg per square meter. A weight that some roofs are unable to support. This is something to be mindful of.
Green and living roofs
Often, incorporating a green roof (also known as a living roof) into the sustainability of a building helps reach Net Zero targets and provide a more ecological construction method. Contrary to popular belief, green roofs are not just flat roof with plants on the top. They are cleverly constructed and fall into three categories: extensive, intensive and biodiverse. As a quick round up – extensive relates to supporting local plant life, intensive accommodates recreational and amenity space and biodiverse is designed to sustain wildlife and recreate habitats that have been lost during construction.
Although lovely to look at, and created for all the right reasons, the way that green roofs are constructed means that they are susceptible to several risks: namely fire and water damage.
Roofs are made from several different building components and layers, and often the flammability and combustibility of a green roof depends upon them. Some include a combination of a timber roof deck and foam-based insulation which means the risk of a potential fire is high. If a roof is not irrigated it is also susceptible to fire during dry weather when the vegetation becomes dry and brittle.
Green roofs, over time can also become water damaged. This is normally owing to roots penetrating the water resisting layer and it’s recommended that an additional root barrier is installed for protective purposes. If the waterproofing layer is damaged, it will require removal and replacements to ensure leaks are resolved. This can be a costly and labour intensive and can lead to a sizeable claim cost.
Conclusion
Whilst the risks to green initiatives, outlined above, can result in a claim, following guidance from us, the insurer broker, and in consultation with risk management and insurers, the risks can be minimalised. Like all good things, considering the implications when thinking about implementing these green aspects can result in a positive outcome. Not just for your residents, and the properties you manage, but to wider society and the environment in general.
James King, Property Strategic Director at Clear Insurance Management.
