How does a solar energy system affect your Home Insurance?

A solar energy system is a large investment that pays off in the long term. Having the capability to generate energy and cut down your electricity bills is a major benefit. A solar energy system can last decades with little to no maintenance and is covered by strong warranties. With that in mind, you may be wondering if your home’s insurance policy is affected by your newly installed solar panel. You may also want to know if you can get insurance for your newly added solar energy system.

Should I let my insurer know that I want to install a solar energy system?

If you’re adding a solar energy system to your home, it’s a significant change to your property. For this reason, it’s a good idea to contact your insurer about this decision. They need to know what’s included in your home’s structure if there is ever the need to rebuild it. To rebuild it properly, they need to be sure of your home’s rebuild value and what’s included in it.

Can my home insurance cover my solar energy system?

Most home insurance plans will cover a rooftop solar panel system. This is because the rooftop solar energy system is installed on your home and considered a part of it. Your home insurance will protect your solar panels against fire, water, extreme weather, falling trees, and plenty of other dangers. You also don’t have to worry about the type of solar panels and other components. As nearly every type of solar energy equipment is covered by your home insurance policy. The important point is that all of your components must be attached to your home.

With this arrangement, you won’t need to change your plan or need a special add-on or rider to your existing plan. This also means that you won’t see an increase in your current premiums. Insurers base the premium of your plan on the value of your house. Your home is sorted in a specific bracket as well. It is also worth noting that solar panels can increase the value of your home. It is important to call your insurance provider and confirm if your solar energy system is covered under your current plan. 

If your home insurance plan covers your solar energy system, you might want to consider raising your coverage limit. This is important as your policy’s coverage limit is the maximum amount it will pay towards a covered loss. Now that your solar energy system is a part of your home, it’s valuable and worth covering. According to Ecowatch, the average estimated cost of a solar energy system in 2022 would be $17,716, with an estimated payback period of about 12 years. Considering the value of your system and the length of time it’s expected to run. Talking to your insurer about raising your coverage limit will help assure that you’re covered.

What if I’m leasing my solar energy system?

If your solar energy system is installed under a lease or power purchase agreement (PPA), there is no need to worry. You aren’t the owner of the solar energy system. The company you have entered the agreement with owns the panels and is responsible for them. While this means that you aren’t responsible for the system’s maintenance, it is still attached to your home. Be sure to carefully read through and observe your lease or PPA before signing it. You need to make sure that your solar panels and home are covered in case of any problems.

What parts of my solar energy system won’t my home insurance cover?

If there are parts of a solar energy system that aren’t attached to your building. A standard policy may not cover them. These can include:

  • Ground-mounted solar panels
  • Solar panel carports
  • Solar sheds
  • Solar gazebos
  • Solar gardens

The coverage of these installations will depend on your insurer’s policy. You may be able to get an add-on or separate policy for the other parts of your solar energy system.

If you’re undergoing the process of installing your solar energy system. You can ask your insurer if their coverage also extends to the installation process. In most cases, installation damage isn’t included in the standard policies, although they can be available as add-ons. It’s also worth noting that general wear and tear isn’t included in your insurance policy.

Our installations come with a 25-year warranty to ensure that your system is taken care of. Your solar energy system will also have warranties that cover the equipment. However, these warranties and their protection coverage will vary between manufacturers and the specific components. Keep in mind that shipping and labor costs may not be included with the replacement parts.

Get started with solar energy today

If you are looking to start your transition to solar energy, we are here to help. Our website also has a free online estimate tool that generates a personalized report for you from a simplified questionnaire. That report will contain the potential savings you can net, and the cost of a solar energy system installed on your property. You can also contact us directly via phone at +1 (602) 363-8919 or via email at Scott@elitesolarenergy.org for more information regarding solar energy for your property.