Insurance for Solar Panels

When making a financial investment, such as a solar energy system, it is important that your investment is protected, granting you peace of mind. Insurance for solar panels is significant in doing so, but it is important to understand different policies and considerations that should be taken before purchasing insurance for your panels. 

Insurance Coverage for Solar Panels

There are various insurance coverages available for solar panels and it is important to understand them in order to determine which is best for you. Dwelling coverage on a homeowners policy may cover damages to roof mounted solar panels. Insurance companies may allow added coverages for ground mounted solar panels to your homeowner’s policy.

If your insurance does not provide coverage or has limited coverage for solar panels, then a separate policy may need to be purchased. Insurance policies address risks such as damage, theft and liability; however, some exclude damages caused by wind or hail so it is important that you fully understand the policy you are looking to purchase. It is essential that you understand the specific coverage of your insurance policy to meet the needs of the risks associated with your solar energy system.

Homeowners Insurance and Solar Panels

If your solar panels are permanently attached to the structure of your home, homeowners insurance policies will typically cover them as part of your dwelling structure. Ground mounted solar panels may be covered by your homeowners insurance policy under “other structures”. Limitations and exclusions related to solar panel coverage in homeowners insurance may arise when damage is caused by wind or hail. It is essential to review and update your insurance policies to ensure that your solar panels are adequately protected. 

Separate Solar Panel Insurance Policies

Separate insurance policies are available that are designed specifically for solar panel systems. Stand alone solar panel insurance policies can help ensure that any damages or left are fully covered. It is important to consider what your homeowners insurance policy covers before purchasing a separate policy. Additional protection and specialized coverage provided by separate policies will help to alleviate any risks that are not covered by homeowners insurance policies. 

Coverage Considerations and Factors

Many factors influence insurance coverage for solar panels such as location, system size and installation quality. All of these characteristics influence the risks that come with implementing a solar energy system which then increases any costs of damages that result. In order to ensure that your insurance coverage adequately protects your system, it is essential that you receive an accurate system valuation and documentation for proper coverage. 

Insurance Claims and Documentation

It is important to understand the process for filing insurance claims for solar panel damage or loss. Oftentimes, specific documentation and evidence are required in order to support claims. Knowing the requirements of your policy is essential in making sure any damages are properly claimed and covered. Properly documenting and making record of receipts related to your solar energy system installation and maintenance can ensure that that potential insurance claims are 

Policy Riders and Endorsements

In order to make sure your solar panels have adequate coverage, some insurance companies may allow additional coverage for detached solar panels to your homeowners policy in the form of a rider or endorsement. This simply means that you are adding specific items to your policy and come at an additional cost. Before agreeing to insurance add-ons, it is important to understand and discuss them thoroughly with your insurance providers. 

Case Studies and Real-Life Examples

Knowing others have had successful insurance claims related to solar panels can generate peace of mind when looking to invest in a solar energy system. A solar energy system owner experienced success when one of their panels quit operating that was manufactured by a company that went out of business. Their insurance coverage made it possible for them to sort out the issue and receive the support they needed to acquire an operating panel. Researching real-life examples can help you make an informed decision on the logistics of implementing a solar energy system with your insurance policy.

Bottom Line

When looking to install a solar energy system, whether roof or ground mounted, it is necessary to understand the details of what your insurance policy will cover if your panels experience damage. As solar energy systems become more popular, is it recommended that policies are reviewed and updated to meet clients’ needs. Adequate protection to safeguard your solar investment and help ensure the long-term benefits of your solar energy system.