Switching to solar energy is a big decision. It lowers energy bills and benefits the environment, but it also raises an important question—will insurance cover solar panels?
Most homeowners insurance policies do cover solar panels, but there are key details to understand. Not all policies are the same, and certain situations could leave you underinsured.
Knowing how your solar panels are covered can help you avoid unexpected expenses.
How Homeowners Insurance Covers Solar Panels
Solar panels are typically considered part of your home’s structure. If they are attached to your roof, they usually fall under your dwelling coverage.
This means they are protected against common risks like:
- Fire
- Hail
- Windstorms
- Falling objects
If a covered event damages your panels, your insurance will typically help pay for repairs or replacements. However, some policies have limitations or exclusions.
Detached solar panels, such as ground-mounted systems, may not be covered under the same part of your policy. They could fall under “other structures” coverage, which may have lower limits.
Checking your specific policy details can help ensure you have the right level of protection.
Do You Need to Notify Your Insurance Provider?
Yes, it’s a good idea to let your insurer know when you install solar panels. This ensures your policy reflects the increased value of your home.
Failing to update your insurance could result in gaps in coverage. If your policy limit doesn’t account for the cost of your solar panels, you may not receive full compensation after a covered loss.
When notifying your insurer, ask these questions:
- Will adding solar panels change my coverage?
- Do I need to increase my policy limit?
- Are there any exclusions I should be aware of?
If changes are needed, your provider can help adjust your coverage. This small step can prevent major issues later.
Will Insurance Cover Solar Panels Without Raising Premiums?
Adding solar panels may slightly increase your homeowners insurance premium. This is because they increase the value of your home.
However, the cost increase is usually small. Some insurers even offer discounts for energy-efficient upgrades, which could help offset the change.
Factors that influence premium changes include:
- The cost of your solar panel system
- Your location and weather risks
- The insurer’s guidelines for solar panels
If your premiums do rise, increasing your deductible or bundling policies can help balance costs. Shopping around for competitive rates is another option.
How to File a Claim if Your Solar Panels Are Damaged
If your solar panels are damaged by a covered event, you can file a claim just like any other part of your home.
Follow these steps:
- Document the damage – Take clear photos and write down details about what happened.
- Contact your insurer – Provide them with the necessary information.
- Schedule an inspection – Your provider may send an adjuster to assess the damage.
- Review your policy – Understand your deductible and coverage limits before repairs begin.
- Receive payment – If the damage is covered, your insurer will issue a payment based on your policy terms.
Wear and tear, poor installation, and manufacturer defects are usually not covered. Insurance is designed for unexpected damage, not gradual deterioration.
Do You Need Additional Coverage for Solar Panels?
Most standard homeowners insurance policies provide enough protection, but some homeowners may need additional coverage.
A solar panel endorsement or rider can provide extra protection if your current limits are too low. Some insurers offer specific policies for solar panel systems, which may cover situations not included in standard policies.
Another layer of protection comes from manufacturer warranties. While these do not replace insurance, they can cover defects and performance issues.
Reviewing your policy and warranty details can help ensure full coverage.
What About Ground-Mounted or Detached Solar Panels?
If your solar panels are not installed on your roof, coverage may work differently.
- Ground-mounted panels – Some insurers cover these, while others classify them separately as “other structures.”
- Panels on sheds, garages, or other buildings – These may fall under the “other structures” portion of your policy, which could have lower limits.
If your panels are not directly attached to your home, check with your insurer to confirm coverage.
Frequently Asked Questions
Does homeowners insurance cover solar panel theft?
Yes, most homeowners insurance policies cover theft, including stolen solar panels. However, you should check your policy limits to ensure full replacement cost coverage.
Will my policy cover damage caused by a storm?
If your policy includes wind, hail, or storm damage, your solar panels will likely be covered. However, policies may have exclusions for high-risk areas prone to hurricanes or tornadoes.
Are leased solar panels covered by my homeowners insurance?
No, leased solar panels are not typically covered under homeowners insurance. The leasing company usually provides its own coverage. However, it’s a good idea to verify this with your provider.
Does insurance cover power production loss if my solar panels are damaged?
Standard homeowners insurance does not cover lost energy production. If this is a concern, check if your solar provider offers production guarantees or if additional insurance is available.
Will installing solar panels increase my property value?
Yes, solar panels can increase your home’s value. This may lead to higher insurance premiums since your home is now worth more, but the increase is usually minimal.
Make Sure Your Solar Panels Are Fully Protected
Installing solar panels is an investment, and protecting them should be a priority.
To ensure your coverage is sufficient:
✔ Review your homeowners insurance policy.
✔ Notify your insurance provider about the installation.
✔ Confirm that your coverage limits are high enough.
✔ Ask about additional coverage options if needed.
ThompsonBaker can help you navigate your insurance options. Our team can review your current policy and ensure your solar panels are fully protected.
Learn more about how we cover solar panels by requesting a review.
