If you’re considering installing solar panels on your property, you’re probably interested in protecting your latest investment. Although solar panels are one of the most vital items you can put in your home, it’s wise to plan for the eventuality of an accident. This brings us to the most critical question homeowners should ask: whether their home insurance will protect their solar power system.
Insurance for Solar Panels
The positive side is that the majority of homeowners insurance plans will cover solar panels in the dwelling part of the policy so long as they’re connected to the home. This encompasses all homeowners since rooftop solar systems are the most popular option for homes with a residential structure. If the solar panels aren’t attached to your house, such as solar pergolas or ground-mounted systems, typically, they will require an additional policy. If your system’s massive enough, it may be a reason to have its policy.
Coverage for Solar Energy Systems
It is important to remember that the homeowner’s insurance policy will likely not be a panacea for any issue that might occur. The damage to your panels is only covered when the reason for the damage is one of the covered perils of the policy. Often, covered injury is due to hail or fire, and earthquake-related damage typically needs a separate, specialized policy. It’s important to remember that wear and tear aren’t usually protected, but this isn’t a problem for a long time when you have a modern system that uses top-quality components.
Leased Solar Panels
A growing number of homeowners are exploring the possibility of leasing solar panels, allowing them to enjoy the advantages of solar energy generation without putting down a large amount of money upfront. In most cases, there is no need to add solar panels to your home’s insurance or get a new policy as you don’t own the boards; however, knowing what insurance coverage is included in the lease is essential.
Every Insurer is Different
It’s crucial to notify your insurance provider about solar panels you have installed on your property or home, as coverage will vary from company to company and even according to the policy. Find out from your agent the types of damages to the solar panels are covered and how the new system could affect the cost of your insurance. Because your insurance rate is usually determined based on the value of your home, the solar panels could increase speed. Your agent can aid you in deciding if you’ll need to alter your insurance policy to offer the most effective protection for this critical investment.