Does Home Insurance Cover Solar Panels?

As solar panels become increasingly popular for their environmental and financial benefits, many homeowners are curious about how these installations affect their home insurance policies. The good news is that home insurance can often cover solar panels, but the specifics may vary depending on your policy and provider.

Solar Panel Insurance Considerations

Your insurance needs for solar panels may vary depending on how you plan to acquire and use them. Consider the following possibilities and their potential coverage-related implications:

• Rooftop solar panels—If your solar panels are permanently attached to the roof of your primary dwelling, they may be considered part of the home. This means they may be covered under the dwelling coverage of your home insurance policy. This coverage can protect against risks such as fire, theft and certain natural disasters.

• Ground-mounted and detached structure panels—Solar panels that are not attached to your home, such as those mounted on the ground or attached to garages and other structures on your lot, may be covered under the other structures portion of your policy. This coverage can vary, so it’s advisable to check with your insurance provider to understand the extent of protection offered.

• Leased equipment—If you lease your solar panels, your leasing company may carry insurance for the panels. However, some leasing agreements might require you to insure the panels yourself. In such cases, you should inform your insurance company about the leased panels to ensure they are covered.

How Might Solar Panels Affect My Coverage?

Although solar panels can help you save on your energy bill, they may also increase your insurance costs. Installing solar panels can increase the value of your home; this may lead to a need for higher coverage limits, and increased limits typically incur higher premiums. It’s a good idea to discuss your intentions regarding solar panels with your insurance agent to understand any possible changes to your policy and premiums.

We’re Here to Help

Contact Contigo Insurance in Palatine, Illinois, today to learn more about insuring solar panels.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.