Solar energy continues to gain popularity with homeowners seeking sustainable, cost-effective solutions. If you’re looking into solar panels, you may be curious about whether your home insurance policy will cover them, especially considering the significant upfront costs. Understanding how a standard home insurance policy handles coverage can help you make an informed purchase and ensure you’re making the right decision for your home and budget. In this article, we’ll explore whether homeowners insurance policies protect solar panels against common risks, including theft, natural disasters, and liability issues.
How much coverage does home insurance offer for solar panels?
Most standard homeowner insurance policies cover solar panels as part of “dwelling coverage,” which generally protects the home’s structure and any attached fixtures. If your solar panels sustain damage from covered perils—such as fire, wind, or hail—your home insurance policy may cover the repair or replacement cost. Each policy and provider is different, so the extent of coverage will depend on your insurer and policy.
Coverage limits also play a significant role. For instance, some policies may have limits on the total amount covered for specific installations or detached structures. This could mean that if your solar panel system is exceptionally costly, the insurance payout might only partially cover the replacement value. To ensure you have enough protection, review your policy’s dwelling coverage limit and consider whether you need additional endorsements or higher coverage amounts.
You should also consider liability protection. While solar panels connected to your home are typically covered, you might need to specify whether you want them included under liability coverage. Additional liability protection may be necessary if an accident related to your solar panel system occurs.
Do you need insurance coverage for solar panels if you lease them?
If you lease your solar panels, you may wonder whether you’re still responsible for insuring the devices. Typically, the leasing company retains ownership of the panels. This means that they’re the party responsible for ensuring the solar panels are insured. Leasing agreements often include coverage for damages and theft, so in many cases, homeowners don’t need to purchase separate insurance for leased panels. However, this doesn’t mean leased panels are exempt from potential issues related to your property insurance.
For example, solar panels leased and installed on your property could still be susceptible to various risks, and the liability for accidents involving these installations might fall under your homeowner’s policy. It’s essential to read the terms of your lease agreement to know what’s covered. Additionally, reviewing your home insurance policy with your insurer can clarify any questions and ensure you understand your responsibilities for repairs or liability.
Ensure Your Home Is Protected With SelectQuote
While many standard policies offer some level of coverage for solar panels, it’s crucial to assess the details and limitations of your coverage to ensure adequate protection against potential risks. Whether you own or lease your solar panel system, proactively reviewing your coverage limits and discussing any necessary endorsements with your insurance provider can help safeguard your investment.
At SelectQuote, we know every homeowner’s situation is unique. Our team has nearly 40 years of experience and is dedicated to helping you navigate the complexities of homeowner’s insurance. Our licensed insurance agents provide quotes from several of the nation’s highest-rated carriers so you can compare rates and find the right coverage all in one place.
