Of course, some are asking about what happens to your homeowners insurance if you install solar panels. And if you’re investing in solar panels they’re a big financial decision and you don’t want your home insurance policy to forget to cover it. In this blog, we’ll explore how homeowners insurance for solar panels works, how it affects your premiums, and which insurance companies offer the best coverage. We’ll also broach some of the common questions about solar panel insurance and warranties.
House Insurance with Solar Panels
If you do decide to put solar panels on your home, then you’re actually making the roof of your home an asset too. Normally solar panels are seen as a more permanent outfit; they are engineered into your home’s form. Because of this, homeowners insurance for solar panels generally covers them under your standard dwelling coverage. However, of course, it depends on your insurance provider and on your policy terms.
What Does House Insurance with Solar Panels Cover?
Standard homeowners insurance for solar panels often covers damage caused by:
- Fire
- Hail
- Wind
- Vandalism
- Theft
And if you’re considering putting in the solar, you want to make sure your policy is enough to cover your investment. You may even have to up your dwelling coverage limit to ensure that your solar panels are completely safe in some situations.
What Insurance Companies Cover Solar Panels?
Coverage for solar panels is included in many major insurance companies’ homeowners insurance policies. But it’s always good to verify this yourself directly with the provider.. Some insurance companies that commonly cover homeowners insurance for solar panels:
- State Farm
- Allstate
- Progressive
- Liberty Mutual
On the other hand, solar panels are usually seen as part of your home and therefore this damage will be covered under your dwelling coverage with these companies. But if your system is not roof mounted (for example if your system is ground mounted), you may also need to add separate coverage for these systems.
Do Solar Panels Affect Home Insurance?
How Installing Solar Panels Affects Your Home Insurance Because solar panels add value to your home, but also a lot of cost, your insurance premium may increase slightly to account for the added expense of replacing it in the case of damage or other deterioration. But the premium cost increase is usually quite modest, and sometimes the savings from using solar energy are greater than the increase.
You may also be eligible for green home insurance discounts from some providers should your home have solar panels. Unless you are at risk, these discounts reward homeowners for eco friendly installations and can help offset the premium increase.
How Do Solar Panels Affect Homeowners Insurance?
Solar panels might slightly increase the coverage under your homeowners insurance on replacement cost, but they also come with potential benefits. Say you install solar panels — you might be able to qualify by purchasing rebates or tax credits which further reduce the cost of coverage. Even some states require insurers to provide policies for solar energy systems.
If you install solar panels and do not inform your insurance company you might find your system under insured or uninsured.
What Insurance Companies Cover Solar Panels?
As noted above, solar panels are covered by many well known insurance companies, but it’s smart to have questions answer because you do not want the coverage that does not meet your needs. Other regional providers may also have policies at rates that compete with State Farm, Progressive, Allstate and Liberty Mutual that are designed to include solar systems.
When discussing homeowners insurance for solar panels with your provider, consider asking:
- Does my policy cover roof-mounted and ground-mounted solar panels?
- Are my solar panels protected from damage during natural disasters like hail or hurricanes?
- Will my premium increase due to the installation of solar panels?
These questions will help you clarify the scope of your coverage.
Conclusion: Homeowners Insurance for Solar Panels
Solar panels are one way you can cut your energy costs and improve your home’s value. But you’ll want to make sure that your homeowners insurance covers your solar system. Make sure to ask your insurance company what your solar panels policy covers and see if you need to boost your coverage, if the need arises.
Learning what solar panels do to your homeowners insurance and who offers the best coverage can help you go solar with no worries.
Q&A: Common Questions About Homeowners Insurance for Solar Panels
Q: Is there any insurance for solar panels?
A: And the good news is that most homeowners insurance for solar panels as a part of the dwelling—for the most part they’re protected by the same perils as the rest of your home (fire or storm damage, for example).
Q: How to cover a solar system?
A: If you want to cover your solar system, you should inform your insurance company, and it should be aware of the installation, as well as your dwelling coverage limit should be high enough to pay for your added value. If you have a ground mounted system, you may require additional coverage.
Q: How much is solar insurance for a plant?
A: Homeowners insurance usually comes with solar panel insurance. But if you have a large solar installation or solar farm, you would need separate commercial policy. However, homeowners typically spend another $50 to $150 per year on premiums for solar coverage.
Q: Are solar panels guaranteed?
A: It’s true, most solar panels have warranties that come in between 20 and 25 years. This warranty often covers issues like panel defects, performance guarantees or even then the labor cost of repair or replacement.
Q: What happens to solar panels after 25 years?
A: Solar panels usually last 25 years, although most are still operating but with reduced efficiency. In general, panels tend to degrade by about 0.5% a year, so that after 25 years they might still generate about 85 percent of what they did originally.