With the cost of solar panels going down each year and the availability of them increasing, you may be considering adding them to your home or are already in the process of doing so. As a great eco-friendly option that can save you money on your electrical bill, solar panels could be the perfect addition to your home, but how does it factor into your homeowners insurance?
We here at Berry Insurance are experts when it comes to covering every aspect of your home, including any new or added additions whether it be a swimming pool, garage, or brand new solar panels.
As with any major addition to your home, it is important to tell your insurance agent when adding solar panels to your property, so they can sort out if the panels will affect your policy and assure they receive the proper coverage.
Are solar panels covered by my home insurance?
Solar panels are covered under a standard home insurance policy, but coverage can vary depending on whether they are attached to your home or not.
If your solar panels are mounted to your roof or somewhere else on your home's structure, it would be covered under your policy’s dwelling protection. If the panels are instead set up on the ground or as a part of another structure on your property, it would be counted under protection for other structures, which covers all non-attached structures.
Will solar panels increase the price of home insurance?
As adding solar panels will be a substantial addition and investment on your property, it is likely that your insurance premium will increase once they are added to your existing policy, but usually only by a very small amount
Depending on whether your solar panels were installed as an attached structure onto your dwelling or detached structure on your property would determine where you need to increase the limits on your policy. The amount of increasing coverages for either dwelling or other structures would be based on the price paid for the solar panels. This extra coverage would assure the panels are covered for their full cost and can receive proper repairs or replacements.
What damages to solar panels are covered by home insurance?
Any solar panels attached to your dwelling structure would receive the same benefits and protections from your standard home insurance policy as any other part of your home. This includes any potential damages that could occur, examples being everything from a heavy lightning storm to a fire on your property.
General wear and tear or damage from lack of maintenance, as well as earthquakes and floods, are possible hazards to solar panels that would not be covered under a standard home insurance policy. This is especially important if your solar panels are mounted to the ground on your property, as they may be more prone to these uncovered types of damages.
Do leased solar panels require insurance?
Many solar companies offer the option of leasing out panels for your home, rather than committing to the sizable investment of a full installation. This is a great option and could let you test the system for your home before making such a big decision.
Depending on the solar panel provider, you may need to receive additional insurance coverage for the panels, either through the company or your own insurance provider. It is important to check with the solar energy company prior to leasing them to find out if you will be covered in the case of any damages to the solar panels or if additional endorsements are needed.
Sunny days ahead
Before choosing to go solar, make sure the panels you receive are properly covered under your home insurance policy. Reaching out to your insurance agent can assure that your new investment gets the protections they deserve.
If you’re wondering how you can save money on your insurance policy with the addition of solar panels, check out this article on ways to save on your home insurance.
