Solar Panels & Home Insurance

Over the last few years, more homeowners are going green with solar panels for their homes. Not only do they help reduce your carbon footprint, they can also save you money on electricity costs.

But what about home insurance? Are solar panels covered by your policy? Before you invest, be sure to do your research on how solar panels fit into home insurance.

Why Add Solar Panels?

Whether you lease or own your solar panels, you’re making an investment. Although expensive, adding solar panels to your home can prove beneficial for you in a few ways:

  • Environmentally friendly: Solar panels produce fewer emissions than running on a grid, and are a renewable source of energy
  • Save money on utilities: You’ll likely see a decrease in your power bills after adding solar, because you’re using less energy from the grid system
  • Independence from power company: With solar panels, you don’t have to rely entirely on a power company to power your devices
  • Increased home value: Home buyers enjoy the idea of a home that’s eco-friendly and self-reliant

Related: All About High Value Home Insurance

Are Solar Panels Covered By Home Insurance?

As permanent attachments to your roof, solar panels are considered part of your home. Most insurers include solar panels in the value of the home. Others offer separate endorsements to accurately cover your investment.

Solar panels are covered by property insurance against perils like wind, hail, lightning, vandalism, broken tree limbs, fire and so on—as long you own them. If you lease panels from a solar power company, proper insurance is up to the company.

Once you provide details about your panels, like location and installation date, your broker will find coverage where applicable. Certain limits may apply, like value and usage measures.

Do Solar Panels Affect Insurance Rates?

Increasing the value of your home means increasing your limits in the event of a claim, or adding coverage for your solar panels. But a small rise in your premium is usually worth it for your peace of mind.

With renewable energy and utility savings, a solar energy system can pay itself back over time and ultimately save you money. Contact your broker to to make sure your solar panels are covered!

Back to Insurance Tips