How Solar Panels Affect Home Insurance

How Solar Panels Affect Home Insurance

Homeowners’ insurance policies can be confusing, and it’s not always clear what is and isn’t covered. If you’re thinking of installing a solar panel system on your home, you’ll want to know if your policy will cover you in the event of damage or theft. In this post, we’ll take a look at homeowners insurance policies and solar panels, and discuss what coverage you can expect.

Solar Panel Coverage Under Home Insurance

Home insurance is there to protect your home and everything in it from theft, fire, or other damage. Most policies will cover solar panels as long as they are attached to your home. That means if they are damaged by a covered event, like a windstorm, you should be able to file a claim and have your damages paid for.

However, there are some things that home insurance generally does not cover. For example, many policies exclude damage caused by wear and tear or neglect. So if your solar panels are stolen because you left them unsecured, or if they stop working because you didn’t maintain them properly, you may not be able to file a claim.

As always, it’s important to read your policy carefully so you know what is and isn’t covered.

Does A Separate Solar Panel Insurance Exist?

Can you purchase a separate solar panel insurance policy? The answer is most likely no, but it depends on your state and your homeowner’s insurance company.

Your home insurance company will likely cover any physical damage to your solar panels that is caused by a covered event, such as wind or hail damage. However, they will not cover any damage caused by faulty installation or maintenance of your solar panels. You may be able to purchase a separate policy that covers these risks, but it is not required in most states.

Some companies offer special endorsements or riders that can be added to your home insurance policy to provide additional coverage for solar panels. These endorsements typically add a small amount of coverage at an additional cost.

Finally, keep in mind that Solar Panel Insurance is not currently available in all states. If you live in one of the states where it is unavailable, you may still be able to purchase a home insurance policy that offers some coverage for solar panels. Check with your insurer to see what options are available in your state.

Does Insurance Apply For Leased Solar Panels?

If you’re thinking about leasing solar panels for your home, you may be wondering if you need to purchase insurance. The answer depends on several factors, including the terms of your lease agreement and the policies of your leasing company.

In most cases, the leasing company will require you to purchase a renter’s insurance policy that includes coverage for the solar panels. However, it’s important to read the fine print of your lease agreement to be sure.

In some cases, the leasing company may provide insurance for the solar panels as part of the lease agreement. If this is the case, you won’t need to purchase an additional policy. However, it’s always a good idea to check with your insurer to be sure that you have adequate coverage in place.

Do Solar Panels Increase the Cost of Home Insurance?

Solar panels are a popular way to save on energy costs, but some homeowners worry that they will also lead to an increase in their home insurance premiums. Luckily, this is not usually the case.

Many insurance companies offer discounts to homeowners who have solar panels installed on their roofs by reputable companies like Smart Solar Energy. The reason for this is that solar panels can help to reduce the risk of damage from severe weather events.

For example, if a hurricane were to hit an area with a high concentration of solar panels, the panels would absorb much of the wind energy and minimize the amount of damage that could be caused by flying debris.

In addition, solar panels can help to reduce the chances of a house fire by providing an extra layer of protection against sparks and embers. As a result, installing solar panels on your home can help to lower your insurance costs.

What Damages To Solar Panel Is Covered By Insurance?

Most homeowners insurance policies cover damage to solar panels caused by wind, hail, snow, and ice. However, coverage for other types of damage, such as theft or vandalism, may be limited or not available at all.

Damage caused by earthquakes and floods is also typically not covered by standard homeowners insurance policies. As a result, solar panel owners in areas at risk for these events may need to purchase additional insurance coverage.

In some cases, solar panel manufacturers offer extended warranty protection that includes coverage for certain types of damage. Homeowners should check their policy documents or contact their insurer to determine what type of damage is covered by their policy.

Should Coverage Limits Be Increased?

As the cost of solar panels has decreased, more and more homeowners are taking advantage of this renewable energy source. However, you may be wondering if you need to increase your home insurance coverage limits when you have solar panels.

The good news is that most home insurance policies will cover damage to your solar panels. However, it is important to check with your insurance company to be sure. Some policies may have a separate deductible for damage to solar panels, so it is important to be aware of this before you file a claim.

Additionally, most home insurance policies will only cover the replacement value of your solar panels, so if you have a loan or lease agreement for your panels, you will need to carry additional coverage to protect yourself from financial loss.

In conclusion, while solar panels are a great way to save money and help the environment, it is important to make sure you have adequate home insurance coverage in place before you install them.


Solar panels are a great way to reduce your carbon footprint and save on energy costs, but it’s important to understand the coverage you have on your home insurance policy in case something happens to them. Most policies have a deductible and do not cover wear and tear, so be sure to speak with an agent about what would happen if your solar panels were damaged.

For more solar power information, be sure to read some of our other blogs. 


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