Solar panels are generally covered by homeowners insurance. However, it’s important to talk to your insurance provider to ensure you have adequate coverage, especially for potential damage in events such as hail or wind.
In this article, we outline important questions for installing and insuring solar panels, including:
- Do I need to purchase coverage specifically for my solar panels?
- What if the solar panels aren’t attached to my house?
- Do I need insurance if I’m leasing the solar panels?
- What damage is covered by insurance?
- Will my payments go up if I install solar panels?
Continue reading for more information on home insurance and solar panels.
Want to Install Solar Panels? Contact Celestial Solar.
If you’re ready to save money powering your everyday life, contact Celestial Solar & Water Systems. We’ve provided the best quality products and services since 2001 through factory-trained technicians, and all our products are proudly made in the U.S.A.
Do I Need to Purchase Coverage Specifically for My Solar Panels?
If your solar panels are attached to the roof or your home, a standard homeowners insurance policy generally covers them under the dwelling coverage. In most cases, your dwelling coverage is around 100% of the replacement cost of your home.
However, it’s crucial to confirm that you have sufficient coverage with your provider. Investing in solar panels increases the replacement cost of your home, so you may need to reassess your dwelling coverage. To keep your solar panels operating reliably long-term, check with your insurance provider about coverage for potential damage from storms or fires.
What if the Solar Panels Aren’t Attached to My House?
If you have ground-mounted solar panels or you’ve installed the panels to a detached structure, such as a shed, they may not be covered under your homeowners insurance policy’s dwelling portion. Instead, your policy may provide coverage through its “other structures” portion, which includes sheds, fences, or detached garages.
In general, the “other structures” portion of your policy is around 10% of the dwelling coverage. In other words, if your dwelling coverage is $400,000, you likely have $40,000 in “other structures” coverage. Depending on the replacement value of additional structures, you may need to increase your coverage after installing solar panels.
Do I Need Insurance if I’m Leasing the Solar Panels?
In most cases, the company you lease the solar panels through provides its own insurance for the panels, so you don’t need to insure them yourself. However, this isn’t always the case. Sometimes, the leasing company requires you to insure the panels through your homeowners insurance or to purchase a separate policy they sell.
If you plan to lease solar panels, talk to the leasing company to understand their policies regarding insurance and determine your specific coverage needs.
What Damage Is Covered by Insurance?
Your homeowners insurance usually provides the same coverage for solar panels as it does for the entire house. In most cases, your policy pays for damage to your panels for perils such as wind, hail, and fire. However, each policy is unique, and some insurance companies exclude specific types of damage.
Check with your insurance company to understand what specific types of damage are covered under your policy. This can help you determine whether you need to increase your coverage and prevent unwanted surprises if a weather or fire event occurs.
Will My Payments Go Up if I Install Solar Panels?
Investing in solar panels is an effective way to save money on your energy bill, but many homeowners worry it might negatively impact their homeowners insurance. Fortunately, adding solar panels doesn’t directly cause an increase in your insurance premiums.
However, you may need to increase your policy limits if installing solar panels significantly adds to the replacement cost of your home. If you need to purchase more coverage to ensure full protection for your investment, you may see a higher monthly insurance premium. The amount you ultimately pay depends on whether you need to increase your coverage, how much you need to increase it, and how your insurance company evaluates the risk of damage.
Harness Solar Power With Celestial Solar.
At Celestial Solar & Water Systems, we help you optimize the comfort and efficiency of your home. As the sole Factory Authorized Distributor in Southern California, Arizona, and Nevada for the ISwim, Solaria, and Q-cells solar panels, we have over two decades of experience providing the best quality and service.
