Will Insurance Cover Solar Panels: A Comprehensive Guide

Installing solar panels can be a significant investment, but many homeowners are eager to tap into the benefits of renewable energy. Most homeowners' insurance policies do cover damage to solar panels, but there are some exceptions.

Typically, standard homeowners insurance policies cover damage to solar panels caused by events such as hail, lightning, and vandalism. However, some policies may not cover damage from extreme weather conditions like hurricanes or tornadoes.

It's essential to review your policy and check with your insurance provider to confirm what's covered and what's not. Some policies may also have specific requirements or restrictions for solar panel installation, so it's crucial to understand these before making a purchase.

Most home insurance policies cover rooftop solar panels, but it's essential to understand the specifics of your policy. Your solar panels are likely covered under your policy's dwelling coverage if they're attached to your main house or an attached structure.

The Inflation Reduction Act offers a 30% tax credit for homeowners who install solar panels, wind turbine systems, or other renewable energy equipment, which could translate into upwards of $8,000 in savings.

Your dwelling coverage limit is usually the main part of your home insurance policy, providing coverage for the structure of your home, any structures that are attached to it, and built-in appliances. If you recently installed solar panels or are planning to, you'll likely want to consider increasing your dwelling coverage amounts.

To ensure you have enough coverage, reassess your policy to make sure you have enough coverage to include the large expense of a solar system. This also applies to any big renovation that significantly increases the value of your home.

Typically, most major insurance policies for homeowners will cover solar panels, because the solar power system is considered to be a permanent attachment to your home. However, insurance policies for solar energy systems come with detailed nuances, so you should discuss several important topics with your insurance provider to make sure you're completely covered.

Some insurance companies will cover the panels once they are installed, but not any of the panels are broken during installation. You should also check if your insurance covers any roof damages caused by the solar power installation.

If you lease your solar panels, the company you lease from should handle any repairs, not your insurance company. However, you need to know how your homeowners insurance interacts with the insurance provided by the solar panel leasing company.

Here are some key things to consider when discussing insurance coverage with your provider:

In Florida, homeowners with solar panel systems greater than 10 kilowatts (kW) in size are required to carry $1 million in liability coverage.

A personal umbrella policy provides policyholders with additional liability coverage that goes beyond their home and auto insurance coverage limits, often costing around $300 a year.

Typically, umbrella policies are offered in increments of $1 million and up to $5 million.

Homeowners insurance includes personal liability coverage, but most companies only let you carry up to $500,000 of it, so you may need to purchase a personal umbrella policy to cover the remaining liability expenses.

If you already have a homeowners insurance policy with Universal, your solar panels are likely covered by the dwelling portion of the policy, but you'll need to increase your dwelling coverage to reflect the added value solar panels bring to your home.

As long as the solar panels are attached to your house, they're covered by the dwelling portion of your homeowners insurance policy, but coverage only kicks in if they were damaged or destroyed by covered perils.

The total cost of your homeowner's insurance is based on the value of your property, which includes the structure of the house as well as the belongings kept inside, and all appliances, electronics, and most home improvements you make are usually covered by the policy.

Installing solar panels can increase your homeowners insurance premiums, especially if you need to raise your coverage limit to cover the value of your new investment.

The cost of solar installation can be substantial, ranging from $10,500 to $14,700 after applying the 30% federal tax credit, so it's essential to ensure your policy provides adequate coverage.

You may need to increase your coverage limits to protect your new solar panels, which can lead to higher insurance premiums.

Bundling other types of insurance, like auto, can help offset the increase in your premiums.

Raising your deductible in exchange for a lower premium is another option, but be careful not to raise it beyond what you can afford.

Your insurance premium will typically go up if you add solar panels, especially if they're mounted on a detached building or a ground-mounted system.

The location of your solar panels can also impact your premiums, with rooftop installations usually covered by standard home insurance.

If you're leasing your solar panel system or buying it on a power purchase agreement (PPA), the panels will be covered by the third party who technically owns them.

You won't have to worry about insurance at all, but it's essential to clarify the details with the PPA or lease provider before signing any agreements.

The company you lease your solar panels from should hold an insurance policy for them, as they're responsible for keeping up with the panels and repairing or replacing them as needed.

Think of the solar company as the landlord of your solar energy system, just like your landlord is responsible for fixing your refrigerator or stove if it breaks.

If you have rooftop solar panels on your main home or an attached structure, like your garage, they're likely covered under your policy's dwelling coverage. This coverage protects the structure of your home and any attached structures, including built-in appliances.

The value of solar panels can increase your home's value, which may lead to a higher premium. You'll want to consider more comprehensive coverage to ensure everything is protected in case of an unexpected disaster.

A 30% tax credit for homeowners who install solar panels can translate into thousands of dollars in savings, with a potential savings of up to $8,000. This credit is part of the Inflation Reduction Act, which aims to improve home energy efficiency.

Your home insurance may cover damage caused by solar panel installation, but it's essential to speak with your insurance agent to confirm. In most cases, your insurance can cover the cost of any damage caused by the installation.

Solar panels can easily cost more than $35,000, but prices have decreased by about 50% since 2010, making the average installation cost around $20,000. You may also find local utility companies offering incentives and subsidizing up to 50% of the total cost.

Some solar systems might require a supplemental policy to cover them. This is especially true for ground mount solar panels or solar carports, which may not be covered under your home insurance.

If you're considering installing panels on an out-building or a separate support system on the ground, be aware that your panels may not be covered by your home insurance policy. This is why it's essential to speak with your insurance agent to see what your options are.

To protect your investment, you may need to purchase a supplemental insurance policy. This will pick up where your home insurance leaves off, but your home insurance premium won't change. Your monthly insurance costs will, however, increase.

Here are some leading providers that offer quality solar panel coverage, including Nationwide, Allstate, Kin, and American Family Insurance. Each of these companies has specific recommendations for homeowners with solar panels, so be sure to check their policies carefully.

An umbrella policy is a type of insurance that provides additional liability coverage beyond what's included in your home and auto insurance policies.

It's designed to kick in when your primary insurance limits are maxed out during a claim, offering extra protection and peace of mind.

In Florida, homeowners with solar panel systems over 10 kilowatts are required to carry $1 million in liability coverage, which is more than most homeowners insurance policies allow.

This is where an umbrella policy comes in, providing the extra coverage you need to meet the state's requirements.

Typically, umbrella policies are offered in increments of $1 million and up to $5 million, with a base policy costing around $300 a year.

This extra coverage can be a lifesaver in the event of a costly lawsuit or accident, giving you the financial protection you need to stay afloat.

Some systems may need a supplemental policy, especially if they're mounted to the ground or connected to a separate structure. This includes ground mount solar panels or solar carports, which may not be covered under your home insurance.

In fact, some insurance providers might not cover such panels at all, so it's essential to check your policy and speak with your insurance agent to see what your options are.

You may need to purchase a supplemental insurance policy to protect your investment, which will add to your monthly insurance costs. Your home insurance premium won't change, but you'll need to consider the additional costs.

To give you a better idea, here are some examples of leading providers that offer quality solar panel coverage:

It's worth noting that, if your panels are mounted to the roof of your house, they're likely considered part of the structure of the home, thus your home insurance policy covers them.