Solar panels on roof during storm.

How Does Solar Insurance Work And What Does It Cover?

May 12, 2022

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If you have solar panels or you’re planning to add some to your home, consider how you can protect your investment. After already shouldering the expense of a solar installation, it can be a financial burden to then pay for any repairs necessitated by damage from a storm or catastrophic event.

Searching for some peace of mind in the face of such possibilities? It might be worth exploring solar insurance. Let’s take a look at what solar insurance does and whether your existing homeowners insurance policy includes it.

Does Homeowners Insurance Cover Solar Panels?

Yes, most homeowners insurance policies cover solar panels because rooftop panels are viewed as a permanent fixture on your property. So, if a fire destroys your home or a windstorm causes significant damage to your roof, your existing policy should cover your solar panels.

The cost of your insurance premiums for solar panels will depend largely on your location and the climate of where you live. While some systems may require a separate policy for coverage, your standard homeowners policy may sufficiently cover many systems. We recommend confirming the details of your coverage by contacting your homeowners insurance company.

Do I Need A Separate Solar Panel Insurance Policy?

If you have a solar panel that’s not permanently attached to your roof, it’s quite possible you’ll need to request a separate solar panel insurance policy. That’s because these systems are more prone to damage than rooftop solar panels. Routine homeowners insurance may not cover ground-mounted panels, carports and larger systems, for example. You may also need a separate solar insurance policy if you live in an area at higher risk for tornadoes or hurricanes.

It’s a good idea to research your policy type to better understand exactly what’s covered. If your current policy doesn’t cover your solar energy system, you can likely extend your coverage through an add-on rider or – as mentioned – a separate solar insurance policy.

Should I Adjust My Claim Limit If I Get Solar Panels?

With solar insurance, you’ll also want to know if there’s a claim limit. Your insurer has a maximum amount it’s willing to pay you for a claim that your policy covers. If you have conventional homeowners insurance and no separate solar insurance policy, it’s important to be clear on whether your claim limit would cover the cost of replacement or repairs for both your home and your solar panel system.

If you don’t believe your coverage limit will be enough to cover structural damage, consider adjusting your policy after consulting your insurance agent. Reaching out to your insurance agent is always wise when making additions to your home.

When evaluating your claim limit, also check your deductible so you'll know how much you’ll have to pay out of pocket after filing a claim.

The Bottom Line

A solar panel installation is expensive, but adding renewable energy to your home provides benefits for you and the environment that go beyond the bottom line. Without the proper coverage of your systems, however, you could be forced to pay a large amount if a storm or house fire damages your solar panels. To ensure protection for your investment, it’s best to review your homeowners policy to see if solar panels are covered or if they’ll require a separate policy.

Have other questions about investing in solar panels for your home? Consult a Rocket SolarSM expert today to discuss your options.

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