Solar panels are the latest technology to improve energy consumption and change how homes are powered. Many with solar panels wonder if their homeowners insurance cover it. Here’s the answer you’ve been searching for.
Before installation, you’ll need to find out exactly what your insurance covers. Many homeowners are thrilled to hear that solar panels are eligible for coverage under their insurance policy, with a few constraints.
If you have attached the solar panels to your home and not on the landscape, it’s usually covered. Look over your policy for solar panel coverage, as sometimes insurers only pay half or a small portion. Sometimes they pay for a complete replacement if something does happen.
While coverage depends on the damage type, you shouldn’t expect coverage for flooding, rusting, or earthquakes. Looking over all guidelines and coverages before adding solar panels to your policy is vital.
You can expect coverage in the case of:
What about an increase in your premium—will that happen if you get solar panels? Sometimes it adds a slight increase, but that’s because solar panels add extra value to a home.
Since insurers base premiums on the home’s value, there’s a chance of cost increase because your home’s worth has changed. Overall, you should expect the increase in your premium to reflect your home’s current value.
You don’t want to get something called “forced insurance,” which is something insurance companies make you get if they don’t know of any large-scale changes to your home. This policy’s expensive, and you should alert your insurance company if you install something new to your home to avoid this cost.
When you inform your insurer about solar panels, they can recalculate your current rate to find solutions to cover your home. They can offer more coverage or products to help safeguard your solar panel investment.
It would be best if you spoke with your agent about potential increases. Depending on the insurer, some may require you to increase the coverage rate. However, others may work with you to recalculate the rate while providing means to make the increased coverage more affordable. The agent knows best and will guide you to the right decision regarding increases.
So, does homeowners insurance cover solar panels? In short, yes, they do. Work with your insurance company to determine future rates before installing solar panels.
We at Go Solar Power have many solar power options for your home. Contact us today, and one of our solar panel system installers can help you find the right solution for your needs.
Solar Contractor License:
California Self Generation Incentive Program: