With the national drive for net zero and the rise of energy costs, people are turning to energy-efficient upgrades to their homes.
From heat pumps to solar panels, in this article, we will inform you on the energy-saving home improvements you can make, the options you can pursue for funding, and how it can affect your insurance policy.
What energy-efficient upgrades can you make to your home?
Types of energy-efficient upgrades and products can fall into a few categories, ranging from simple, low-cost replacements to more advanced changes.
In this section, we will go over some of the products available to you that cover different energy efficiency sections of your home, like insulation, heating, energy, and general appliances, whilst highlighting their impact on your home insurance policy.
Stopping heat loss: Insulation
| Product/Upgrade | Description | Insurance Relevance |
| Loft Insulation | Laying materials in the loft floor or between rafters. | Generally low-impact, but can be high-value if insulating a fully converted loft. |
| Wall Insulation | Cavity Wall: Filling the gap between two layers of exterior wall. Solid Wall: Applying insulation to the inside (internal) or outside (external) of the wall. | High Impact: External Wall Insulation (EWI) can significantly change the structure and materials, increasing the rebuild cost. |
| Floor Insulation | Insulating suspended timber floors or concrete floors. | It can be high-cost and should be disclosed to your insurer if extensive. |
| Draught Proofing | Sealing gaps around windows, doors, chimneys, and skirting boards. | Low-cost and usually has no insurance impact. |
Heating systems:
| Product/Upgrade | Description | Insurance Relevance |
| Heat Pumps | Air Source Heat Pump (ASHP): Extracts heat from outside air to heat the home and water. Ground Source Heat Pump (GSHP): Extracts heat from the ground. | High Impact: These are complex, high-value and require professional installation. The cost of replacing one must be included in your rebuild value. Always check with your insurer if this is something that is included with your buildings insurance. |
| Biomass Boilers | Burns organic material (like wood pellets) to provide central heating and hot water. | High Impact: Represents a significant investment and should be disclosed to the insurer. |
| Modern, Efficient Boilers | Replacing an old, low-efficiency gas boiler with a modern condensing boiler. | Lower impact than a heat pump, but a new boiler is still a high-value item that will be included in your buildings cover. Consider taking additional Home Emergency cover to protect the boiler in the event of an emergency. |
| Smart Thermostats & Controls | Systems like Google Nest or Hive that learn your habits and control heating remotely/intelligently. | Low-cost upgrade, but can sometimes lead to small premium discounts for reduced risk. |
Energy generation:
| Product/Upgrade | Description | Insurance Relevance |
| Solar Panels | Solar Photovoltaic (PV): Generates electricity from sunlight. Solar Thermal: Heats water using sunlight. | High Impact: They are high-value fixtures on the roof. You must notify your insurer to ensure they are covered for damage (e.g., by storms) and that the rebuild value includes the cost of replacing. |
| Battery Storage | Systems (like Tesla Powerwall) are used to store electricity generated by solar panels or to take advantage of off-peak tariffs. | High Impact: A high-value electrical item usually covered under buildings insurance; always disclose to your insurer. |
General appliances:
| Product/Upgrade | Description | Insurance Relevance |
| Energy-Efficient Glazing | Upgrading from single to double or triple glazing. | Medium Impact: A large set of new windows is a significant investment and raises the cost of repairs/rebuilding however, the impact on your premium should be minimal if at all. |
| Energy-Efficient Appliances | Replacing old appliances (fridge, washing machine, oven) with A-rated or higher efficiency models. | Low impact on building insurance, you should make sure these are covered under your contents insurance. Please note: Wear and Tear is excluded from all home insurance products. |
| LED Lighting | Swapping out old incandescent or halogen bulbs for Light Emitting Diodes. | A good decision for energy saving, low cost and no insurance impact. |
Insurance after energy upgrades:
For any item listed under High Impact or Medium Impact, especially those that are fixed to the building (like insulation, heat pumps, and solar panels), you should notify your home insurer to ensure that your total rebuild cost is adequately covered.
Funding your green home: energy efficiency grants
It’s always worth searching for available support to help fund these types of upgrades to your home. The UK offers a few government-backed grants and schemes that can help make some of the higher-cost changes more accessible.
Some of the grants and schemes include:
- Energy Company Obligation and the Great British Insulation Scheme provide funding for measures like loft and wall insulation, often targeting low-income or vulnerable households.
- The Boiler Upgrade Scheme (BUS) offers grants to help property owners cover the cost of installing low-carbon heating systems like heat pumps and biomass boilers.
- Nest scheme offers advice and free energy efficiency home improvements to people on low incomes or those with certain health conditions.
- Warmer Homes Scotland and the Home Energy Scotland Grant and Loan offer funding and support for energy efficiency improvements.
- Warm Homes: Local Grant offers funding for energy-saving improvements to your home.
How Nest GI can help
Our specialists at Nest GI can review your existing coverage and provide you with a competitive Buildings and Contents insurance quote that accurately reflects the full costs of making energy-saving home improvements.
Whatever you do, don’t risk being underinsured.
Contact us today for a free, no-obligation quote.
