The mainstream media would have us believe that we live in dangerous times. Unexpected windstorms, frequent bushfires caused by global climate change, blatant thievery, and an increase in home break-ins are just a few of the threats to your home’s assets. Here’s the bad news. Fortunately, there is some good news for homeowners as well about the residential solar panel insurance.

Several states in the United States have made concerted efforts to make solar energy more affordable to homeowners, resulting in significant reductions in solar installation costs. As a result, an increasing number of homeowners are opting to power their homes with solar panels.

So, about the residential solar panel insurance here’s the big question: is your residential solar installation covered by your homeowners insurance?

There is more good news in this area, as solar panel insurance is now available. However, the following factors will determine whether the coverage is automatic or whether you must pay an additional premium to insure your residential solar installation.

Solar installation type

Home insurance companies typically cover solar rooftop panels. Solar panels installed on the ground or over a carport, on the other hand, may be excluded from coverage. Some businesses may even refuse coverage entirely because they are more vulnerable to damage.

Expected coverage type

If your current insurance company does provide coverage, it will most likely cover damage caused by the elements (such as windstorms, snow, lightning, and other natural disasters), damage caused by an unexpected fire outbreak, and any loss caused by theft. These are reasonable safeguards for your solar system. Insurance companies, on the other hand, are unlikely to cover damage caused by poor installation quality or even faulty solar panels.

residential solar panel insurance what you should know
Property type and ownership

If you rent or lease your home (rather than owning it outright), insurance companies may refuse to include solar panels in your home insurance policy, regardless of whether you own or lease the solar setup. Property owners, on the other hand, can include leased solar panels in their home insurance policy.

The type of property can also be a deciding factor. Apartments and condos, for example, may require special clauses to cover residential solar panels.

Contractor/solar installation credibility

In the United States, solar installations are still considered a niche market. Insurance companies will thus demand high levels of expertise from certified contractors before approving coverage for their installations. As a result, before you begin installation, make certain that your chosen contractor is certified and approved by your insurance company. Based on the size of your home, some companies may also limit the number of solar panels that can be installed.

Finally, while solar energy is sometimes more expensive than traditional electric energy (in many cases, it is not), the cost of installing residential solar panels is at an all-time low. When you factor in the various tax breaks provided by state governments, solar energy becomes an increasingly appealing option for homeowners.

Before you sign the contract, make sure to protect your investment by ensuring that the insurance company you choose provides adequate coverage for your valuable solar installation.

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