Solar panel insurance: A guide on solar-related home insurance

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Solar panel insurance: A guide on solar-related home insurance
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Solar Panel Insurance: A Guide on Solar-related Home Insurance

Installing solar panels can help you save money on electricity bills. Still, before drilling into your roof, you must learn about solar panels and solar panel insurance.

With no further ado, let’s get started!

Does Home Insurance Cover Rooftop Solar Panels?

Rooftop solar panels are typically covered by home insurance. Installing solar panels is a great way to save money and prevent environmental damage. They’re usually a permanent attachment that provides your home electricity – just like patios and security systems.

Do Solar Panels Raise the Cost of Homeowners Insurance?

It’s essential to evaluate your homeowner’s insurance before installing solar panels on your home, as such an installation will have to be accounted for in your homeowners’ insurance and,therefore, will likely increase your premium.

Increasing the coverage limits to account for solar panels is extremely important, as otherwise, something like an outdated air conditioning unit or installed solar panels could endanger your financial security. Likewise, you may need more than your coverage before installing the solar panels to cover the cost of repairs or replacements if you file a claim.

Will I Need an Additional Policy for Solar Panels?

A supplemental policy might be required for some solar systems, as some elements – for example, ground mount panels or solar carports – may not be covered by your home insurance policy. Some insurers may even refuse to cover specific types of panels.

To protect your investment, you will need to purchase a replacement plan to cover the costs that your current insurance does not. Your home insurance won’t change, but your monthly premiums will increase.

The best you can do is consult with your insurance agent to determine whether your coverage is enough and what extras you need (if any).

What Will Happen if My Roof Is Damaged During the Installation of Solar Panels?

Although there are seemingly too many unknowns, it is always wise to talk to your insurance agent. In most cases, your home insurance will cover the cost of the damages caused by the installation.

However, working with an experienced and licensed solar installation team is best to prevent any potential damage to your roof during a rooftop solar panel installation.

What About Insurance for Leased and PPA Solar Panels?

When you lease or enter a power purchase agreement for your solar panels, the third party technically owns them, meaning you don’t have to worry about insurance.

Before you sign anything, check with the PPA or Lease Provider to get additional details.

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Will My Solar Panels Be Insured Against Natural Disasters?

Floods and earthquakes aren’t usually insured under regular home insurance, but many insurers provide additional coverage. While most storm-prone states have homeowners insurance that covers wind damage, some don’t.

If this is the case, contact your insurance provider about any optional products they may offer.

What Will Happen if My Home Insurance Doesn’t Cover the Solar Panels?

If your home insurance doesn’t cover your solar panels, it may be high time to find an insurer who will protect them.

Shop around for the best deal on insurance from different providers. You’ll find other agencies that offer various types of home insurance, and you might even be able to use a policy from one company for coverage at another.

Like the installation of security measures, adding more windows or doorways with shutters to the exterior of your home can help lower monthly insurance rates.

Many home insurance providers offer discounts on your premiums if you make your house eco-friendly. Installing solar panels to power your home is a great way to save money.

Insurance for Solar Panels: The Essentials

The only way to know if the price of your homeowner’s insurance will increase due to the solar panels is to get in touch with your insurance agent.

Before you schedule an installation and before you buy solar panels, please be sure to check with your insurance company. If they don’t cover them, shop for a different policy to keep the panels.

If your insurer covers solar panels, listen to their suggestions. They may recommend extending coverage limits to protect what you have invested in, and you might be entitled to discounts.

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Date added: October 17, 2022