Are you looking for solar panel insurance cover for your solar system? Well, here is a guide for everything you need to know about insuring your solar panels.
Solar Panel Insurance Guide: What Are Your Options?
Are you in the process of installing some solar panels on your property? And, are you wondering how you can purchase an insurance cover for your solar panels?
Well, today, we explore deeper about solar panel insurance covers and how they work.
With the continued search for an alternative source of green energy, solar power turns out to be one of those great choices. More and more people are turning to the use of solar energy, and therefore, more solar panels are being installed each passing day.
But how do we cover these solar panels, considering they can be quite expensive investments?
How do you ensure that those solar panels you install on your rooftop are safe when damages occur?
Well, let’s go through this article together to see what your options are in getting an insurance cover for your solar panels.
What Are Your Options for Insuring Your Solar Panels?
When it comes to insuring your solar panels, homeowner’s insurance cover is the most common option, although there are also some others.
Does home insurance cover your solar panels? This should be the first question we should ask ourselves. Will your home insurance cover cater to your solar panels?
The answer to this should be “yes.” You heard me right. When it comes to home insurance coverage, most policies treat the solar panels in a similar manner, like the home security system or your heating and AC systems. However, your covers coverage limit will determine whether it’s enough to cater for repairs or replacements.
Since the cost of solar panels can go even up to around $25,000, it’s only prudent that you do intensive research on how to cover them.
You should be aware of what is included in the home insurance and what is not.
So, What Events Are Covered By The Solar insurance Policy?
Damage By Fire
The first condition that your home insurance policy covers are any damages that occur as a result of a fire. This means that when a fire burns down your house or destroys the solar panels, you are eligible for compensation.
However, you should note that for you to be compensated, the insurance firm must ascertain that the fire was an accident and not as a result of negligence or intentional. If they can prove that the fire occurred due to negligence or disregard for the electrical safety requirements, then it might be hard to receive compensation.
Let’s say that your panels have been damaged by some fallen objects, such as a tree. You will receive compensation only if the insurance firm can determine that the tree fell as a result of natural causes and that you had taken every possible measure to prevent the fall.
If, for example, the tree that fell was diseased and you failed to cut it down, it might be difficult to get compensation even when a hurricane causes the tree to fall. This is because it can be categorized as an event of negligence.
Therefore, you should ensure that such occurrences are looked into, to prevent damage.
The wind is a natural phenomenon, and some insurance companies may not be offering policies to cover wind damage. Therefore, you should ensure that you ask your agent before you purchase that policy.
Just as some companies may fail to insure natural disasters like earthquakes and floods, damage caused by the wind to your solar panels may also not be covered.
Having the full and correct information will ensure that you make the right decision.
Usual Tear And Wear
Just like any other type of electronic equipment, a solar panel is subject to its manufacturer’s warranty. Tear and wear is an event that you can anticipate, and you can prevent fast wear and tear process.
However, tear and wear is something that only the warranty from the manufacturer can cover. Insurance doesn’t cover the natural wear and tear process.
Some Solar Systems Might Need a Supplemental Policy
Most insurance coverage providers will, in most cases, cover for rooftop solar panels but might fail to cover other types of solar systems under the home insurance.
For example, for solar carports and ground-mounted solar panels, you may be required to purchase an extra policy to cover them. Worse still, some insurers will not offer insurance covers for these types of solar systems at all.
Therefore, to ensure that your investment remains covered, one option is to buy that supplementary policy to cover where your home policy won’t cover. This means that your monthly cost for insurance will increase, although the home insurance premium remains the same.
To be on the safe side, make sure to talk to your insurance agent, and get all the information you require to make an informed decision. Be sure whether they will cover your solar panels or not, and let them give you all the available options.
What of The Leased Panels And The PPA Solar Panels
Whether you have leased your solar panels or have acquired them through a PPA (power purchase agreement), your solar panels are still safe. These will be insured by the third party or company, which technically owns the solar panels.
This implies that you need not worry about insuring your solar panels at all.
Nonetheless, you still need to confirm this with the lease or PPA provider before you can sign the agreements.
But What Will Happen If My Home Insurance Doesn’t Cover My Solar Panels?
While most standard home insurance policies will cover your solar panels, there is still a possibility where your insurer can put it as an add-on. And although most companies consider the solar panels as fixed attachments, some will still need you to add some extra money.
This happens since they consider solar panels to be more exposed to various natural elements that may cause imminent damage.
In addition, due to the high cost, some owners may see it as a challenge if they are looking to avoid hefty payouts.
In the event that your insurance company doesn’t offer coverage for your panels, you can always try to find another company to ensure that you get an insurance cover.
Therefore, you have the ultimate choice to stay with one company and pay an extra premium for your solar panels or find a new company.
Solar panels’ insurance coverage will, therefore, depend on your needs, as well as the insuring company.
Must I Amend My Home Insurance to Cater to My Solar Panels?
Well, this is a good question and that you must have an answer before you buy those solar panels. It is prudent that you are sure that they are covered or not before you make the purchase.
However, whether you require an amendment to the home insurance to include the solar panels or not, it will all depend on your insuring company. Some will automatically cover the solar panels after you notify them, while others will require you to purchase a different policy for the solar panels.
Therefore, it’s good to take your time to ask all these questions before anything. This will guarantee you peace of mind, as you know, your panels are covered.
Can Solar Panels Installed On My Condo Be Covered?
If you intend to install solar panels on your condo, note that this might be a little bit different. The condominium insurance policies might be very different from the home insurance policies, depending on the insurer.
Therefore, before you decide to install, you might want to talk to your insurer and get the full information. You should find out if there are any special considerations required to be made for the solar panels to be included in the condo insurance.
What Are Companies That Offer Solar Panel Insurance?
Most companies that offer home insurance covers will also offer solar panel insurance policies. Some of them will not require you to apply for a separate policy but rather include it in your home insurance policy.
However, some will need you to pay a little higher premium, and others will need you to get a completely new policy for the solar panels.
Therefore, if you want to insure your solar panels, the first place you should visit is your home insurance provider. In case they don’t offer coverage for solar insurance, you can always look for another company that does.
Both the solar panels and the entire solar energy systems are mostly regarded as permanent attachments on your property. Therefore, they, in most cases, fall under the home insurance cover, just like the security system.
However, it’s also good to find out what kinds of damages are covered under the policy. This is because some damages caused by some particular threats such as hurricanes are not covered.
State Farm Insurance
One insurance company that offers solar panels insurance cover is state farm insurance. Here, solar panels are considered as fixed attachments alongside things like decks, porches, and attached garages.
Therefore, these are covered under the home insurance policy, and you don’t need any additional premium or a separate policy.
Universal Property is another insurance company that covers solar panels. However, for the solar panels to be included in the dwelling policy, they must be attached to the house.
This means that they mostly cover the rooftop panels.
Allstate Home Insurance
Yet another great company that can provide solar panel insurance for your solar panels is the Allstate Home Insurance. The company views your solar panels as they would the security system, heating, or AC systems.
Therefore, the rooftop solar panels’ insurance coverage will be under the dwelling insurance policy.
However, since the solar panels are expensive, it might be prudent to revise your coverage limits. This is the maximum that you will receive in case of an insured loss.
Therefore, you must ensure that the coverage is enough to repair or replace the solar panels in the event of the damage occurring.
How Do Solar Panels Affect Insurance
Installation of solar panels, just like many other alterations in your house, will affect the cost of your insurance. This means that in most cases, you will have to either revise your coverage limits or purchase a new policy.
Either way, the cost of your insurance will go up. Therefore, when you want to go green energy, make sure you are ready for an increased cost in insurance premiums.
Is Going Solar Viable or Not?
Currently, in some states, solar energy has been made mandatory for new upcoming homes. However, if you are in the process of buying a solar system, it’s good to understand that insurance companies will only insure the solar system that you own.
Therefore, if you don’t own your solar system, then you cannot enjoy insurance coverage. This happens especially if an energy company installed your solar panels, and you only pay for electricity consumption. This means that you’re technically not the owner of the solar panels.
While this can seem economical for you, it might, on the other hand, affect your home insurance policy. This is because, as the solar contractor is installing the solar panels on your roof, they will be using equipment that may damage your roof.
Therefore, your home insurer might consider this an additional risk, which might make them demand a higher premium.
Therefore, although solar energy is environmentally friendly and may also lower your electricity costs, it is also prudent to consider how to insure the solar system.
This is because they are quite an expensive investment that needs to be protected.
Therefore, when you decide to purchase some solar panels, let their insurance policy, be in your mind.
See Related: SunPower Solar Panels Review
Conclusion On Solar Panel Insurance
Going green on energy is one thing that most people have embraced within the recent past. However, the cost accompanied by the installation of solar energy can be considerably high.
Therefore, it is ideal that you get solar panel insurance for your solar panels. I hope that you find the information you were looking for and be able to make the right decisions.
Do you have any additional views or observations for this post? Kindly leave your comment below.
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