Home Insurance

Going solar is a major investment, and protecting that asset through your home insurance policy is a critical step that many homeowners overlook until it’s too late.

Here is a guide to help you understand how solar installations interact with your insurance coverage and what you need to do to keep your home protected.

1. How Solar Affects Your Insurance

When you add solar panels, you are increasing the "replacement cost" of your home. Because your home is now more valuable and expensive to rebuild, your insurance company will likely adjust your policy.

Premium Increases: Expect a 10–20% increase in annual premiums. This reflects the added cost of replacing both your roof and solar equipment after a covered loss.

Coverage Category:

• Rooftop Panels: Typically covered under Dwelling Coverage (Coverage A).
• Ground-Mounted Systems: Often covered under Other Structures (Coverage B), which may require additional endorsements.
• Leased vs. Owned: Owned systems must be insured by the homeowner; leased systems are usually insured by the solar company.

2. How to Check and Update Your Coverage

• Notify Your Insurer Before Installation: Ask if your current policy covers rooftop solar or requires an endorsement.
• Request Written Confirmation: Get an updated declarations page or written proof of coverage.
• Review Coverage Limits: Ensure your dwelling limit covers both your home and solar equipment.
• Organize Documentation: Keep contracts, specs, and warranties for future claims.

3. Important Reality Checks

• Not All Perils Are Equal: Some policies exclude hail or wind damage to solar equipment.
• Faulty Workmanship Is Excluded: Roof leaks caused by improper installation fall under installer warranty, not insurance.
• Maintenance Matters: Wear and tear or reduced efficiency is not covered.
• Liability Requirements: Some net-metering agreements require specific liability coverage—verify with your insurer.

Summary Checklist for Homeowners