Solar panel insurance coverage is usually included in most homeowners insurance policies, meaning that you don't need to buy a separate policy for your solar panels. Generally, solar energy systems and roof panels or shingles are considered permanent fixtures to your property, similar to a patio or security system. You may not observe an increase in your homeowners insurance premium after installing solar panels on your roof. However, you'll likely need to raise your coverage limits to account for the cost of replacing your solar panels, which will likely result in an increase in your premium.
The additional cost can be considered small compared to the risk, particularly when you consider the location of the solar panels. Since they are placed outdoors in elevated areas that are vulnerable to wind, hail and lightning, they are at greater risk of damage. It's best to increase coverage to guarantee it protects solar panels in the event of an incident. Some insurance companies may also allow you to add coverage for separate solar panels to your home policy as an additional clause or guarantee.
Telling your insurance company that you have solar panels will help you modify the qualification of your policy and determine if you need extra coverage. Whether you buy or lease your panels, you should always inform your insurance company that you have installed solar panels on your home. If the solar panels are on the ground or roof of a shed or detached garage, they will be covered by coverage from other policy structures. Locating an insurance provider who can find coverage options that fit your budget and understands the needs of a home with solar panels can be difficult.
For instance, if your solar panels are damaged by hail or fire, your homeowners policy may cover repair or replacement. Fortunately, you have the option of leasing solar panels if you want to start using solar energy but don't have the initial investment necessary to buy them. A standard homeowners insurance policy covers roof-mounted solar panels as part of the policy's housing coverage. Some states may even offer homeowners incentives and tax credits to help cover the initial costs of purchasing solar panels.
Adding solar panels increases the value of the home, as well as the cost of rebuilding if the home is destroyed by a fire or storm. Because insurance requirements for solar panels can vary widely, it's best to consult an insurance agent who knows local regulations before buying or leasing solar panels to make sure you can get the right coverage. People who rent their solar panels may not need to purchase additional coverage for their solar panels, as some leasing companies have their own insurance for solar panels. As long as the solar panels are connected to your home, they will be covered by the housing portion of your homeowners policy.
However, it's best to contact your solar energy company to see if they offer panel insurance in case of a fortuitous accident or weather-related event.