Need To Know
Third-Party Solar Warranties
7 Questions Installers Must Ask
In which states is the provider licensed to issue service contracts or home protection contracts?
Plans that cover home solar system repairs typically qualify as “service contracts” or “home protection contracts”, both of which are subject to strict regulations in some states and overseen by local regulatory authorities, such as those responsible for insurance or consumer protection. In most jurisdictions providers must be approved / registered / licensed. In our experience, not all providers comply with these requirements.
Omnidian: (View Our State Licenses)
Omnidian sells service contracts in 31 states: Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Idaho, Illinois, Kansas, Louisiana, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas, Utah, Virginia, Washington, and West Virginia.
Most (but not all) of these jurisdictions require a provider to have a license, permit, or registration to sell service contracts, and Omnidian has complied with the licensing / permitting / registration requirement (as applicable) in each of them.
In which states is the provider licensed as an insurance company?
Service contracts are not insurance. Only a licensed insurance company can issue an insurance contract or policy. If a service contract purports to provide insurance coverage, the provider needs to be a licensed insurance company. An insurance brokerage license does not authorize a service contract provider to issue insurance policies in its own name, and a brokerage license does not authorize a brokerage to issue service contracts in states where a license is required for service contract providers.
None: Omnidian does not sell insurance.
Who is the company signing the legal contract? Are they financially stable?
Omnidian, Inc. issues service contracts in 30 states and its wholly owned subsidiary Omnidian Home Protection Company of California, Inc. issues contracts in California.
Omnidian, Inc. currently manages more than 170,000 solar systems nationwide for Fortune 1000 companies, businesses, and homeowners. Omnidian, Inc. is owned by a group of stable long-term investors including Liberty Mutual Insurance, Microsoft, Activate Capital, IA Capital, and some of the largest utilities in the world (Duke Energy, Avista, Centrica, Evergy, and National Grid Partners.)
How can I trust that the provider will honor its long-term contractual obligations?
If the service contract provider is backed by a third-party insurer, make sure to:
1) Obtain the name and verify the rating of the actual insurance company. For example, someone might say they have a policy through Lloyds of London. But Lloyds of London is not an insurance company; it is a marketplace that connects buyers and sellers of insurance.
2) Verify that the name and contact information of the insurance company are listed on the service contract, otherwise the homeowner has no way to know who it may contact regarding a loss if the provider disappears or otherwise fails to process their claim. In fact, in some states, providers are required to include this information in their service contracts if they have relied on an insurance policy to prove their financial stability.
3) Confirm that the insurance company covers the full scope of the provider’s liability under the homeowner’s service contract. In general, the third-party insurer’s role is to provide insurance coverage to the service contract provider, not the homeowner. There is a chance that the insurance policy does not cover all of the obligation to homeowners, in which case there could be a gap in coverage. For example, if the service contract provider did not receive regulatory approval for its contract, it is possible that the insurance policy might not cover the full term of the service contract with the homeowner.
Many states require service contract providers to submit proof of their financial stability to regulators before they can operate in the state. Financial stability is often proven obtaining an approved insurance policy, by submitting proof of a high net worth (typically, $100 million), or by placing cash reserves in an escrow account and/or posting a security deposit with the regulator.
Omnidian complies with the financial stability requirements in each of the states it operates in, through cash reserves and (where applicable) security deposits. Even in states that do not impose financial restrictions on providers, Omnidian maintains cash reserves for the protection of its customers.
Is the provider accredited with the Better Business Bureau (BBB) and what is their rating?
How many full-time employees does the provider currently have?
If the information is not readily available, a provider’s web site and their LinkedIn profile can help estimate their headcount.
Omnidian (February 2022):
Omnidian has over 140 full-time employees, including over 20 software engineers and data scientists that continually improve our industry-leading monitoring, issue detection, remote diagnosis, and false alert filtering technology.
How many incidents/claims has the provider paid so far?
It’s recommended to contact the provider directly to determine their experience.
Omnidian (February 2022):
Omnidian has paid more than 9,000 repair or replacement invoices for the benefit of our clients, for a total amount of $4M in parts and labor.