What Is Solar Insurance?

In today's eco-friendly climate, the phrase "going green" means more than adding extra veggies to your diet. Many homeowners are taking steps such as using recycled products and installing solar panels to make their homes more sustainable and energy-efficient.

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If you're considering solar panel installation, you may need to add solar insurance to your homeowner's policy. This can help ensure costs will be covered in the event of damage caused by severe weather, wind and other external factors.

Do Solar Panels Need to Be Insured?

Solar panels are typically installed on roofs or mounted on the ground, which makes them more vulnerable to the external elements. Insurance requirements for solar panels can vary from state to state and the specific rules of your local utility company. However, it's generally recommended to add solar insurance to your existing homeowners policy and/or purchase supplemental insurance to cover damaged panels.

In most cases, homeowners insurance policies automatically provide coverage for solar panels, but this isn't guaranteed. If your policy doesn't offer coverage, you may be responsible for solar panel repair or replacement costs. The best way to avoid surprises down the line is to thoroughly go over your homeowners policy with a professional insurance representative.

Are Solar Panels Covered by Homeowners Insurance?

Most homeowners policies offer dwelling coverage for solar panel damage due to elemental factors such as wind, hail and fire. However, specific coverage can vary significantly from policy to policy. If you're planning to install solar panels, you'll want to consult with your homeowners insurance carrier to determine if you're already covered or you need to purchase a supplemental policy.

It's also important to note that coverage may be limited to roof-mounted solar panels. If you have solar panels on top of a shed, they may be covered under "other structures" in your homeowners policy. Detached panels mounted on the ground may require a specific endorsement or rider added to your initial policy, or you may need to purchase a separate, stand-alone policy.

If your homeowners policy doesn't include coverage for solar panels, you may want to look into purchasing a stand-alone policy. These separate policies are specifically written for solar panel systems, and they offer full, specialized coverage. Stand-alone policies may also help cover the differences if your homeowners policy has a claim limit.

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What Is Solar Insurance — and How Does It Work?

Solar insurance or solar panel insurance is a specific type of coverage that protects homeowners in the event of damage caused by certain covered perils. While exact coverage can vary per policy, covered perils generally include severe weather, fire damage and vandalism. Solar coverage provides homeowners with peace of mind, knowing their panels can be repaired or replaced if they experience significant damage.

Solar panels are installed outdoors and designed to withstand the elements. However, fires, heavy rains and even technical issues can cause the panels to malfunction. Solar insurance generally covers the costs of replacing or repairing panels and necessary equipment. Additionally, some solar insurance policies include liability coverage. This helps protect homeowners if their panel system causes property damage to neighboring homes or injury to another party.

Are Home Solar Panels Automatically Covered?

Because attached solar panels are usually considered permanent additions to your home, they're often automatically covered in homeowners insurance policies. However, ground-mounted or detached solar panel systems may require separate policies or policy riders.

Understanding exactly what's covered and what isn't can be challenging, even if you're well-versed in homeowners insurance. To ensure you're properly covered, it's always a good idea to check with your homeowners insurance agent before starting your solar panel installation project.