As the world shifts to a more environmentally conscious state, solar panels are becoming all the rave. That’s because solar panels are a great addition to your home if you’re looking to generate energy and save money at the same time. Installing them is not cheap though. According to the Center of Sustainable Energy, a residential system typically costs between $15,000 and $25,000. And like all big investments, you want them protected.

The good news is, it’s likely your home insurance policy already covers solar panels, so a separate policy may not be needed. However, you may need to increase the amount of coverage on your home to account for the cost of the system, which could raise your premium. Of course, not every policy or solar energy system is the same. 

Solar panels are covered if:

  1. Your solar panels are permanently attached to your home’s structure, such as rooftop-mounted panels. Your homeowners insurance policy may cover it as part of your dwelling coverage and pay out a claim if it’s damaged by a covered peril.
  2. You have panels on top of a detached structure, like a shed, it’s possible to be covered as an “other structure”, but you should always check with your agent. Ground-mounted solar panels may be covered under your other structures coverage as well.

Purchasing a separate solar panel policy

Certain systems, such as panel carports or ground-mounted panels, may require you to add it as a rider or get a separate policy entirely. This is usually determined by the size of your system. If it’s large enough, it may merit a separate policy. Whether or not these different types of systems are covered depends on your policy type.

As always, we are here to answer any and all of your questions. Give us a ring if you’re thinking of installing one of these bad boys and we can talk about your options.