Adding solar panels to a home is an investment, and it’s important to understand if they are covered by your homeowners insurance.
Before taxes, an installed rooftop solar energy system can cost on average anywhere between $15,000 and $30,000, according to the Center for Sustainable Energy. Being able to insure that investment against damage from a storm or other event could be key in whether or not you choose to add solar panels to your home.
Here are a few things to consider about insurance coverage and home solar energy panels.
Get solar panel insurance
Solar panel insurance coverage is included in most homeowners insurance policies, which means no separate solar panel insurance is needed. Solar energy systems are usually considered a permanent attachment to your property, similar to a patio or a security system. It’s important to note that some policies may exclude damage to these attachments when it’s caused by a particular threat, such as wind. You should always check with you homeowners insurance to see the details of their solar panel coverage.
Adjust claim limits, if needed
Another important issue regarding solar panel insurance is that there may be no claim limit involved. A claim limit is the maximum amount paid out for a loss that your insurance policy covers. This is different from coverage on structures that are clearly separated from the house, such as a storage shed.
For homeowners with solar panels, that’s a big positive. At the same time, it’s important to check the details of your policy to confirm you have enough coverage to pay for repairs or replacement of your home including the cost of the solar panel system. You should also be aware of any deductible amount you’ll need to pay before coverage is activated. If you feel you’d like to raise your coverage limit, consult your agent to adjust your policy.
Know whether you need a separate policy
Most rooftop solar energy systems are covered by standard homeowners policies, which doesn’t change your insurance plan. However, you may need to increase the amount of coverage on your home to account for the cost of the system which can then raise your premium. Of course, not every policy or solar energy system is the same.
Solar panel systems can be an excellent investment, reducing your electricity bill while increasing the value of your home. Protecting that investment with the proper homeowners insurance can help ensure you’re covered if the unexpected happens. We can help you with any questions you may have! Just contact us by clicking here.