How Solar Panels Impact Home Insurance

Adding solar panels to your home can be a wise investment, providing advantages such as lower energy bills and a boost in property value. However, it’s essential to understand how this addition might impact your home insurance.

Coverage Considerations

Standard homeowners insurance policies may include coverage for rooftop solar panels under dwelling protection coverage. This means that if your panels are damaged by a covered peril, such as fire or vandalism, your policy may pay for repairs or replacement. Notifying your insurance provider about the installation is essential to ensure you have the appropriate coverage. Ground-mounted panels or those on detached structures might require additional coverage under the other structures part of your policy.

Premium Adjustments

Adding solar panels can increase the replacement cost of your home, which may lead to higher insurance premiums. This is because the overall value of your property has increased, and your coverage limits might need to be adjusted to account for the new addition. While the increase in premiums is typically modest, it’s a good idea to discuss this with your insurance agent to understand the impact on your policy.

Potential Exclusions

Certain insurance policies might exclude specific types of damage to solar panels, like wind or hail. Review your policy details and consider purchasing additional coverage if necessary. In some cases, you might need a supplemental policy to cover specific risks not included in your standard homeowners insurance.

Learn More

While solar panels can positively impact your home’s value and energy efficiency, they also bring changes to your home insurance. By understanding these effects and collaborating with your insurance provider, you can ensure your investment remains well-protected financially. Contact Global Insurance and Tax Services to discuss your insurance options.

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.