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Going solar is a great way to reduce your monthly expenses. Once you cover the upfront costs, you’ll likely see a reduction in your electric bill since you’ll be harnessing the power of the sun to keep your home running. If you’re considering making the switch, you may be wondering if your solar panels are covered by your homeowners insurance. Since your solar panels are attached to your home, you might think the answer would be simple, but there’s more to it. So, are your solar panels covered by your homeowners insurance?
Well, maybe so.
Don’t assume there is coverage and there isn’t. Adding solar panels to your home is a big investment, and you want to make sure you protect them properly. Storms or extreme weather can destroy the panels, but insurance can protect you from a hefty repair bill if your solar system is damaged.
Here’s what you need to know about whether or not your home insurance covers solar panels.
Are solar panels covered by my home insurance?
If you purchase the solar panels (instead of leasing them) and install them on your roof (instead of in your yard or other structure), your homeowners insurance will most likely cover the panels. Beth Swansona licensed insurance agent at The Zebra, an insurance marketplace.
But there is one big caveat: You’ll want to check your coverage levels. For most homeowners, their policy covers the replacement cost of their home when they bought it or took out the policy. If you then add another $20,000 for solar panels, that could exceed the amount you have in your coverage policy.
Swanson advises you to reevaluate your policy to make sure you have enough coverage to cover the major cost of a solar system. (This also applies to any major renovation that significantly increases the value of your home.)
But generally, solar panels are covered for any type of damage that your roof is covered for, Swanson said, such as storm damage. However, if the solar panel installation causes a leaky roof, that may not be covered; in that case, the solar panel installer will likely be responsible for repairing any damage they cause to your roof.
If you need to increase your coverage limit to cover the value of your solar panels, your monthly premium will likely increase, Swanson says.
But there are ways to counteract that. You can offset the increase by bundling other types of insurance, like auto insurance, if you haven’t already. And you can also consider raising your deductible in exchange for a lower premium, but be careful not to raise your deductible higher than you can afford.
Solar panels are exposed to the elements. It is important to know if your homeowners insurance will cover any damage to them.
How do I take out insurance for my solar panels?
You may find that your solar systems are not covered under your current policy. If that’s the case, start by talking to your current insurance company to see what your options are, Swanson said.
If your current insurance company doesn’t have options, look for other insurers. “I always encourage people to shop around,” Swanson said. You may be able to find another homeowners insurance company that covers solar.
And if you end up needing a separate policy to cover just your solar panels, your solar installer can offer a solar-specific insurance policy. Your panels may also be covered by a manufacturer’s warranty.
What damage can occur to solar panels?
Solar panels, by design, are exposed to the elements. This allows them to absorb the sun, but also exposes them to damage. Extreme weather such as hail can damage the panels, as can a fallen tree or branch.
If your panels are damaged and they are covered by insurance, you will want to file a claim right away. This can usually be done online or through an app provided by your insurance company. “You can file a claim without even talking to anyone,” Swanson said. You will need to provide personal information and information or photos describing the damage. “Filing a claim is a lot easier than people expect,” she said.
