As solar energy adoption surges across the U.S., more homeowners are investing in rooftop solar panels to cut utility costs and support sustainability. But a critical question arises: Does homeowners insurance for solar panels provide the coverage you need? Here’s what you should know to protect your solar investment.
Most standard homeowners insurance policies cover solar panels, if they are permanently attached to your home, such as rooftop installations. Insurers typically treat these panels as part of your dwelling, protecting them against perils like fire, hail, wind, and theft under your dwelling coverage. However, if your solar panels are ground-mounted, attached to a carport, or installed on a detached structure, coverage can vary. Some insurers may require an add-on (endorsement) or a separate policy for these types of installations.
Adding solar panels increases your home’s replacement value. This means you may need to raise your coverage limits to ensure your policy fully protects your upgraded home. Failing to do so could leave you underinsured if you need to rebuild after a major loss.
Premium Impact: Increasing your coverage to include solar panels may raise your premium. The increase can be as little as $15 per month or several hundred dollars annually, depending on your system’s value and location.
No Need for Separate Policy (Typically): For most rooftop systems, a separate solar insurance policy isn’t necessary unless your system is unusually large or installed on a structure not covered by your dwelling policy.
Policy Review: Always review your policy or consult your insurance agent to confirm your solar panels are covered and to what extent.
Ownership vs. Leasing: If you lease your solar panels, the leasing company typically insures them. If you own them, you’re responsible for coverage.
Warranties: Manufacturer and installer warranties may cover certain types of damage or defects, but they don’t replace homeowners insurance.
Detached Installations: Ground-mounted or detached solar panels may require an endorsement or separate policy for full protection.
Growth: As of 2024, there are over 4.8 million solar energy systems installed in the U.S., according to the Solar Energy Industries Association.
Cost: The average cost for a residential solar system is now around $25,000, down 47% from 2010.
Home Value: Solar panels can increase home value by up to 4.1% on average.
Insurance Impact: Most insurers report premium increases for solar-equipped homes are modest, especially compared to the system’s value.
Safeguard your solar investment and secure your home's future. Connect us at Jack Stone Insurance Agency for a comprehensive policy review. Our experienced team will ensure your homeowners' insurance for solar panels provides the robust coverage you deserve, so you can enjoy the benefits of clean energy with complete confidence.
Coverage for electrical failures or surges may be limited under standard policies. Check with your insurer about specific exclusions or the need for equipment breakdown coverage.
Solar batteries may not be automatically covered. You may need to add them to your policy or increase your coverage limits.
Damage during installation is typically covered by the installer’s insurance, not your homeowners policy.
No, insurance covers sudden, accidental damage, not gradual efficiency loss or wear and tear.
