There’s more to consider than some might think (Image: Lazy_Bear via Getty Images)
With global tensions driving up oil prices, households throughout the UK are confronting increasing costs. This has prompted many to explore switching to renewable energy alternatives such as solar panels and heat pumps, but new research reveals that insurance coverage for these upgrades is not always transparent.
Analysis of UK home insurance products from Defaqto, which provides independent Star Ratings for financial products, demonstrates that while products are adapting to greener technologies, there remain gaps in clarity for consumers regarding what they are covered for. Approximately 1.5 million homes in the UK are not connected to the gas grid and instead depend on heating oil, making them especially vulnerable to fluctuations in global oil prices.
Defaqto’s research demonstrates that 78% of home buildings insurance products explicitly state that solar panels are included within the definition of buildings. Nevertheless, 22% of products make no explicit reference, leaving homeowners uncertain.
For ground source heat pumps, clarity is even more restricted. Just 40% of products clearly confirm that cover is provided, whilst 59% do not specify whether these systems are included or excluded. A small number (around 1%) expressly state that heat pumps are not covered.
In many instances, insurers may depend on general definitions of buildings, such as ‘fixtures and fittings’, to include these items. However, without clear wording, this can leave room for confusion. Angela Pilley, home insurance specialist at Defaqto, said: “As more homeowners look to invest in renewable energy solutions, it’s essential they understand how these changes impact their insurance cover. While solar panels are widely recognised within building insurance products, the position for heat pumps is far less consistent.
Solar panels might also be something people are thinking about (Image: U. J. Alexander via Getty Images)
Read more: Gold outlook ‘remains positive’ despite price drops
Read more: Brits told ‘take action or lose £13k’ with HMRC deadline in two weeks
“Where policy documents are unclear, homeowners should not assume cover is included. It’s always worth checking directly with your insurer to avoid any unexpected issues at claim stage.”
The research also reveals confusion surrounding home emergency and boiler breakdown protection. While these products are intended to safeguard against heating failures, they are not always compatible with newer technologies.
Defaqto discovered that 39% of home emergency or boiler breakdown products do not clearly indicate whether heat pumps are included. More than half (52%) explicitly exclude them, whilst just 9% confirm protection, often on a reimbursement basis, meaning customers must pay upfront and claim the cost back later.
For households continuing to depend on oil heating, protection for loss of oil remains a significant feature. Presently, 91% of home contents insurance products include protection for loss of oil, either as standard (89%) or as an optional add-on (2%).
However, the level of cover differs substantially. Defaqto said 10 per cent of products provided no cover and six per cent offered less than £1,000.
Furthermore, 44 per cent provided between £1,000 and £2,499, seven per cent between £2,500 and £4,999 and 33 per cent £5,000 or more. The rising cost of heating oil means that lower limits may not fully cover losses in the event of a leak or theft.
Angela added: “Whether you’re sticking with oil heating or investing in greener alternatives, it’s important to review your insurance arrangements. Renewable upgrades can significantly increase the value of your property, so homeowners should ensure their buildings sum insured reflects these changes. It’s also worth checking any existing home emergency cover, as not all products are keeping pace with newer heating technologies.”
Tips for homeowners
- Check whether solar panels or heat pumps are explicitly included in your buildings insurance
- Review your buildings sum insured after installing renewable technology
- Confirm whether your home emergency or breakdown cover includes heat pumps
- If you rely on oil heating, check the limits for loss of oil cover
- Speak to your insurer if you are unsure how upgrades affect your policy
The data was gathered from Defaqto Matrix on March 17, 2026.