Are solar panels covered by home insurance?

by | Mar 4, 2022 | Solar Panel | 0 comments

The adaptation of solar energy has become more commonplace. Although solar panel installations have become less expensive than a few years ago, they still are a huge investment. As with every investment, there is the possibility of losing your money to unforeseen circumstances. With solar panels, there is the risk of damage from winds, hurricanes, fire, water, falling trees, and accidental damage.

How do you ensure your investment is well protected?

Insurance is an age-long proven method to secure investments. The question often asked is: are solar panels covered by home insurance? Or is there a need to take out a separate insurance policy for solar panels.

There are different situations, and different rules may apply:

  • You currently live in a home that has solar panels

The solar panels are often installed on the rooftops and are thus considered part of the building. With most insurers, the panels are covered under your standard home insurance. It is imperative to check with your home insurer to confirm.

  • You have an insurance policy on your home and want to install a solar system.

If you already have an insurance policy on your home and are considering installing a solar panels, talk to your insurer to avoid any future conflicts. In any case, you should keep the insurance company updated about modifications to your home.

The installation of solar panels might increase the value of your home, with a subsequent increase in the premium you pay on your home. The increase is usually not so much and so does not constitute a significant increase in cost. However, there might be no changes.

What if the solar panels are not on my rooftop?

Solar panels are now being installed on car ports or as a separate structure from the home. Hence, you might need to take out a separate insurance policy for the panels with this design.

They are not considered a part of the home; thus, they will be insured as you would a car or any other property. While this is considered extra cost, it can be offset by all the money you save not purchasing non-renewable energy.

To what extent is my solar panel protected?

The question of what is covered by the home insurance policy is often asked. For one, it does not insure against damage from wear and tear due to usage. It insures against damage from fire, water and natural disasters.

A standard plan will usually not cover accidental human damages. If there is a valid concern about that (especially for panels not on rooftops), you need to pay more for the extra considerations.

Regardless, you must be well informed about the peculiarities of your insurance plan and talk to your insurance provider about your plan; always read the fine prints.

Solar installations are an investment you can secure, just like your home.

Ready for a chat ? Contact Select Electrical and Solar Solutions for your professionally installed, quality solar panels.