Solar energy solutions continue to increase in popularity and prevalence throughout Oklahoma. If you haven’t already considered adding solar panels to your home, you might be doing so in the next few years. But there’s one important thing to consider, as with anything you add to your home or property, does your home insurance cover solar panel damage? Whether you’re already enjoying the lower energy bills that come with a rooftop setup, or you’re considering installation for yourself, it’s important to understand how this hefty investment is protected. That’s what we’re here to discuss today.
Are Solar Panels Covered by Homeowners Insurance?
The short answer is yes, in most cases, solar panels will be covered under your standard homeowners insurance policy. This assumes that you have rooftop-mounted panels, in which case they are typically considered to be a part of the home’s structure and therefore fall under basic dwelling coverage. If you have ground-mounted panels or choose to mount your panels on a separate structure – such as a shed or detached garage.
In both cases, this is a generalization, and some providers can change things up. So, the best advice we can give you, is to notify your insurance provider when installing solar panels so that they can let you know if you need to do anything else to ensure their coverage.
What Types of Damage Are Covered?
If your solar panels are included in your policy, they’ll be covered for the same types of damage as the rest of your home. That means things like floods and earthquakes are likely excluded unless you’ve upgraded your coverage to include them. If you live in an area prone to these types of risks, you should definitely consider adjusting your policy. Here are some examples of things that should be covered under a standard homeowners policy:
- Wind and hail
- Fire and lightning
- Falling objects; such as tree limbs
- Weight of snow or ice
- Vandalism and theft
What If My Panels Cause Roof Damage?
A specific fear when it comes to installing solar panels on your roof is that they could actually be the cause of damage to your home, so would the damage be covered in that event? Unfortunately, most policies exclude poor workmanship, which means if the damage is caused from your panels being improperly installed, it’s unlikely to be covered. Hopefully, whoever installed your panels has liability insurance or offered a warranty, which you should ask about before going into business with them.
Will Solar Panels Increase My Premium?
Another concern is whether or not adding these solar solutions – which likely was/will be quite the investment – is also going to increase your premium. Unfortunately, there’s a high likelihood, as adding these panels is going to increase the value of replacing your home, thus increasing your provider's risk. It is likely only going to increase your premium by $15 to $40 per month, and making sure you’re fully prepared is worth it.
Leased vs. Owned Panels
One final thing to consider is whether or not you actually own the solar panels. While you can certainly purchase your solar panels and cover the costs of installation and everything yourself, there are other options, such as leasing or entering a power purchase agreement. In either of these events, the company you’ve entered into a deal with will typically retain ownership of the panels, and thus carry its own insurance policies. On the other hand, some agreements might require you to add your panels to your own policy. It’s best to discuss insurance before signing any kind of agreement.
Protecting Your Solar Investment
Purchasing and installing solar panels on your home is a smart upgrade, but you need to make sure that you’re properly protecting your investment. If you need help figuring out what your current policy covers or are interested in new coverage, don’t hesitate to get in touch with us right here at Glover Family Independent Insurance. We look forward to hearing from you!