Do solar panels affect home insurance?

As more homeowners consider installing solar panels, many wonder how these energy-saving additions might impact their home insurance. Solar panels can increase property value, reduce energy costs, and contribute to environmental sustainability. But with these benefits come questions about insurance coverage, premiums, and potential liabilities.

Does insurance cover solar panels?

If you acquire solar panels through a power purchase agreement or solar lease, you don’t own the solar panels, so you don’t need to worry about coverage limits or exclusions in your own policy. Instead, the solar provider’s insurance company will cover the equipment, since they are the owners of the panels.

How much does solar panel insurance cost?

The solar panel insurance cost will depend on various things like your location, your current coverage amount, the size and cost of your system, and your insurance company’s plan. Claims for damaged solar panels would also vary based on your insurance plan, but likely follows the same process as other damaged property claims.

Are solar panels covered under a homeowner's policy?

This means that as long as you own your solar panels and they are rooftop-mounted (additional policies may be required for ground-mounted systems), the system will be included under a homeowner’s policy and covered in standard plans without raising your premium.

Do solar panels increase insurance premiums?

Solar panels can increase your insurance premium costs if the system makes the replacement value of your home exceed your coverage limit. Increasing your coverage limit to include the value of your solar panels could increase your insurance payments by as little as $15 a month to upwards of a few hundred dollars.

What does a solar installer warranty cover?

Your installer warranty will cover any damage that occurs to your home or solar panels during the installation process. The list of perils your insurance provider covers varies from company to company, so make sure to check what is covered under your specific plan.