Generally, yes – solar panels are covered by homeowners insurance. And that’s a huge relief because the last thing you’d want is to pay out of pocket for unexpected damage, which can be a costly headache. But how much coverage you get depends on how your solar panels are installed.
- If your solar panels are attached to your roof (and you own them, not leased), they’re typically covered in full under your dwelling coverage. That’s because your insurance treats them as a permanent part of your home, just like your roof itself.
- If your solar panels are installed separately from your home (e.g. ground-mounted panels or panels on a detached garage), your insurance *might* still cover them.
Do Solar Panels Increase My Homeowners Insurance Premium?
In most cases, yes, adding solar panels to your home can raise your homeowners insurance premium.
Remember, your insurance provider originally valued your home before you installed solar panels.
And since adding a solar energy system isn’t exactly a minor upgrade, costing around $15,000 to $25,000 after tax credits, it increases your home’s value and, in turn, the insurer’s risk – which can lead to higher premiums.
If your current coverage isn’t updated to reflect this addition, your policy might not fully cover the cost of repairs or replacement in case of damage.
Now, does this mean your premium will always go up? Not necessarily. Many homeowners have added solar without seeing an increase in their rates. But from what I’ve seen, that usually comes down to two things:
- They contacted their insurer and confirmed that their existing coverage is already enough to protect the new solar panels (this is the ideal scenario).
- They assumed their policy covers their panels without checking with their insurer.
You don’t want to be part of the second group. If you assume you’re covered but actually aren’t, you could be in for an expensive surprise if something happens to your property and your insurance comes up short.
That’s why calling your insurer right after installing solar panels should be standard procedure.
Ask if a premium adjustment is needed or if you’ll need a policy endorsement or rider to cover your panels. Your provider will walk you through the next steps and any paperwork needed to finalize your policy update.
What Issues/Events Does Home Insurance Cover?
Your standard homeowners insurance likely covers your solar panels against certain unexpected events. According to the Insurance Information Institute, these typically include:
- Fire or lightning
- Hail or windstorm
- Explosion
- Riot/civil commotion
- Vandalism or malicious mischief
- Theft
But just as there are covered events, there are also situations where your standard policy may not apply, or might require additional coverage, such as an endorsement or an entirely separate policy:
- Floods
- Earthquakes
- Hurricanes
- Damage caused during solar installation or due to lack of maintenance
That last point is a big one.
If your solar panels are damaged because they weren’t installed properly or maintained well, your insurer may deny your claim. That’s why working with a reputable solar installer and staying on top of routine maintenance is just as important as having coverage in place.
Bear in mind that these are general guidelines. Your specific policy may have certain conditions, exclusions, or special clauses that affect coverage. The best way to know exactly what’s included (and what’s not) is to contact your insurance provider directly.
How do I File a Home Insurance Claim for My Solar Panels?
The fastest way to file a home insurance claim for your solar panels is pick up the phone and call your insurance company. This way, you’ll have clear instructions on what to do next.
The exact process will depend on your insurer, but expect to:
- Be asked to explain details of the incident, including when it happened and the extent of the damage.
- Submit documentation, like photos of the damage, installation details/agreement, etc.
- Follow additional instructions, like paperwork and submission deadlines
Many insurance companies also allow you to file a claim online or through their mobile app. If your provider offers this option, you may be able to upload photos, submit documents, and track your claim status without making a phone call.
If I Leased My Solar Panels, Who is Responsible for Insuring Them?
If you leased your solar panels, the leasing company will be responsible for insuring them, not you. Since they own the system, it’s their insurance policy that applies in case of damage or loss.
That means you don’t need to add them to your homeowners insurance.
However, I’d still recommend checking with your solar provider first. You might have missed details in the fine print, and there could be a clause requiring you to carry a certain level of coverage.
Does Home Insurance Cover Roof Damage From Solar Installation?
Your homeowners insurance may or may not cover roof damage caused by solar installation – it all depends on your policy’s terms.
The good news is, if your system was installed by a certified solar installer, their own solar panel warranty will likely cover the repairs at no cost to you. For example, we at Avail Solar offer a 30-year workmanship warranty, which includes coverage for roof penetrations.
But the even better part? When you work with a certified installer, the risk of roof damage is minimal to begin with. They know exactly how to secure your panels without compromising your roof’s structure, so you won’t have to stress about leaks or long-term issues.
What to Do If My Insurer Refuses to Cover Certain Types of Damage to My Solar Panels?
If your insurer refuses to cover specific types of solar panel damage, here are some things you can do:
- Check if your insurance offers riders or endorsements to extend the coverage to solar panels. If available, ask about the cost and whether it makes sense for you.
- Consider purchasing a standalone solar insurance.
- Switch to a better homeowner insurance provider, especially if you find your current provider to be too restrictive.
Final Thoughts
In most cases, your standard homeowners insurance will cover your solar panels. And with that being almost always a given, what you really have to figure out is whether your existing policy is enough to protect your entire solar-powered home if the worst happens.
That’s why reaching out to your insurance company should be standard procedure once you go solar. Confirm what’s included in your coverage, ask about exclusions, and make sure you won’t be left paying out of pocket for unexpected repairs or replacements.
And when it comes to your solar system, we at Avail Solar handle everything – from design and installation to long-term maintenance – so you enjoy a smooth, hands-off transition to solar while your panels keep cutting your electric bills for years. Get a quote or call us today!