Insurance for Solar Panels: Why Do You Require Such Insurance?

Solar installation insurance offers complete protection against an unexpected financial blow, which can be caused by partial or complete damage to the panel system, theft, or an accident directly related to the solar installation.

As a solar panel owner, you’re probably looking to avoid unnecessary costs for repairing panels that have failed due to natural phenomena or intentional human actions. If that’s the case, you must insure your solar installation. Solar insurance will make you feel more confident in unforeseen situations and will help you compensate for losses within the scope of your insurance policy.

A graphic representation of how solar coverage protects your solar system from natural disasters, theft, power outages, and property damage.

By installing a solar panel system on your roof, you add it to your property while improving your home. If you want your solar system to be protected, you must inform your insurance company about the installation. This way, you will get homeowners insurance for solar panels.

From this article, you will learn:

  • What solar panel insurance includes
  • Does homeowners insurance cover solar panels?
  • How to choose solar panel homeowners insurance

What Does Solar Panel Insurance Include?

The lifespan of a solar panel is enormous. It reaches 40 years of age, while the manufacturer also provides a guarantee for its products, which can be 25 years. However, solar panel warranty insurance does not apply to damage that may occur from various external factors.

So, what does it include? A standard policy covers several types of potential hazards that could cause damage to panels:

The table indicates possible risks and unforeseen situations depending on their origin.

Natural Related to Human Activities
  • Natural disasters (hail, lightning, storm, etc.)
  • Damage caused by hurricanes, debris, branches, or birds
  • Fire due to natural phenomena
  • Theft
  • Vandalism
  • Fire caused by arson or other human activity
  • Damage to an aircraft or vehicle
  • Explosions
  • Accidental damage (for example, by a ball)

 

Standard insurance includes unexpected downtime in the operation of the solar installation and the associated loss of income, as well as accidents or damage to other people’s property from falling or other impact of the panels themselves.

Another thing to keep in mind is that not all insurance companies include coverage for wind and hail damage for rooftop solar panels.

There are also specific policies covering additional risks and unforeseen scenarios that are not included in the standard policy. For example, insurance for the installation phase of solar panels, when the policy covers financial expenses from accidents or property damage.

Are Solar Panels Covered by Homeowners Insurance?

99% of the time, your rooftop solar panels are covered by your home insurance. Today, most of such standard policies may contain solar panel insurance coverage as an integral part of the house structure. This coverage involves almost all types of panels: photovoltaic, hybrid, and solar, as long as they are attached to your home.

But that’s not always the case. So, does home insurance cover solar panels? That’s something only your insurer decides. The company may consider your situation too risky and may deny coverage. In specific cases, it can be issued under a separate policy.

Looking for the right solar panel coverage? Don’t waste another second — get your free solar quote right away!

But here’s another important question: how much does home insurance go up with solar panels? It depends on the company and your policy. Typically, after connecting the solar panels to your home insurance, the insurance coverage increases proportionally to the sum insured. However, the policy may provide some additional services in case of damage to the panels (for example, solar panel cleaning insurance).

Contact your insurer to determine the specifics of coverage for your solar panels and your policy overall. Every company is different, so there is no single rule or policy regarding this issue.

How To Choose the Best Solar Insurance

To figure out which coverage is the best for you, you should analyze the available options and choose the one that best suits your requirements.

First, check with your insurance company directly for details. Consider asking the following questions:

  • Are solar panels covered by home insurance?
  • Do solar panels increase homeowners insurance?
  • Does the company provide additional services in the condition of an insured event?

If you need to take out a new insurance policy or your company is not the best choice to safeguard your solar system, analyze all available offers for solar insurance in Chicago.

A graphic representation of the general guidelines for choosing solar panel insurance, including cost evaluation, terms and conditions, customer reviews, etc.

Here are some tips to help you get the most suitable coverage for your solar panels:

  1. Estimate cost of home insurance solar panels
  2. Find out if you have insurance for solar panels with comprehensive coverage
  3. Make sure the coverage extends to the entire solar panel system
  4. Identify your specific requirements and compare the capabilities of the insurance company with them
  5. Find out if you can save money by paying upfront rather than monthly
  6. Find out if there is a bonus or discount
  7. Find out if they have a policy on empty buildings (if you are interested)
  8. Study customer reviews

Pro tip: spend some extra time checking out the insurance market and comparing all the costs with possible risks. It will help you find the optimal solution.

What Is Solar Panel Insurance Cost for Chicago Households?

All you have to do to obtain home insurance for solar panels is call your insurance company and let them know you want to add your solar installation to your home insurance policy.

You will need to name the amount for which you will insure the solar panels. The insurance company will add this amount to the insurance cost of the existing policy and send you an adjusted invoice for payment.

Solar panel insurance cost per year fluctuates from $100 to $1,000. Much depends on the insurance company itself, the size of the solar installation, the location of the property where it is located, the required coverage options, and its limitations.

More often than not, insurance companies provide small discounts to households with solar panels. Homeowners may also qualify for tax breaks or rebates associated with installing the panels, which can help reduce the cost of insurance coverage.

Hidden Limitations of Solar Panel Insurance

For some policies, solar panel insurance will have an upper limit on the amount insured for your solar panel system. Therefore, before taking out a policy, you need to find out whether the insurance company imposes a limit. Otherwise, the cost of your solar panel system may well exceed this limit.

Some insurance companies do not cover ground-mounted solar installations, which are covered by insurance, but only solar panels installed on the roof.

A graphic representation of hidden limitations of solar panel insurance, like normal tear and wear, manufacturing detects, accidental damage, etc.

Often, insurance companies do not cover damage to solar panels caused by:

  • Flood
  • Earthquake
  • Wear and tear of equipment
  • Lack of maintenance
  • Manufacturing defect
  • Incorrect installation
  • Accidental damage

Pro tip: always check with your insurance company to find out exactly what is and is not covered by solar panel insurance.

Start Looking for a Suitable Solar Insurance

Despite the long service life and long warranty from the manufacturer, your solar panels remain unprotected from bad weather or someone’s malicious intent. To sleep peacefully and not think about possible risks and unexpected expenses, you just need to take out insurance.

Looking to compare solar panel insurance coverage? Get your free solar quote in a matter of minutes!

Frequently Asked Questions

How do you protect yourself against solar panel theft?

To protect your solar panels from theft, you need to install lamps with motion sensors, surveillance cameras, locks, and alarm systems on your household premises. During installation and assembling of solar panels, they must be connected to each other with special fasteners.

What happens if my home insurance won’t cover the panels?

Suppose your home insurance does not cover solar panels. In that case, you must take out a separate contract for solar panel coverage or choose another company that provides more coverage for home insurance.

What is not covered by solar panel insurance?

Usually, solar panels are covered by homeowner’s insurance. This applies to those panels that are attached to the roof or the house itself. It does not apply to ground-mounted solar installations. For such installations, you must purchase an additional insurance policy for solar panels.

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