Skip to main content

Will Insurance Cover Solar Panels?

Solar panels offer an efficient and eco-friendly way to power your home. They capture renewable energy from the sun and convert it into electricity. As their popularity grows, solar panels are not only seen as a sustainable energy solution, but also as a smart economic investment. Lower production costs and long-term savings on energy and maintenance bills make them an attractive option for many homeowners.

While standard home insurance policies often cover solar panels, there are factors that may affect the coverage you need. One important consideration is whether you lease or own the solar panels. The answer may influence your insurance needs.

So, if you're thinking about buying a home with solar panels or installing them on your current property, it's important to reach out to your insurance provider and ask, "Will insurance cover solar panels?" to fully understand how it will impact your policy.

How solar panel installation affects your coverage

Leased vs. owned panels

Solar panels can be quite expensive, and leasing solar panels is an affordable option for homeowners who can't make a full, upfront purchase. In these cases, the leasing companies often have their own coverage, so you may not need to worry about adding the panels to your insurance policy. It's a good idea to discuss insurance beforehand with your leasing company to better understand how you're covered for damages.

If you decide to purchase your panels, then you’ll be able to work with your homeowners insurance company directly for physical damage claims. You’ll also be responsible for any repairs needed that may not be covered by your homeowners insurance policy.

Roof-mounted vs. ground-mounted panels

Typically, roof-mounted panels and solar shingles are covered by standard home insurance, subject to certain limits and exclusions. Take some time to look into the details and see what will insurance cover. Solar shingles and panels can present unique challenges due to the various risks involved.

Ground-mounted solar panels, which are installed separately from your home, work similarly to rooftop panels but require special attention in your insurance policy. These may be covered under the “other structures” section of your policy. If ground-mounted systems aren’t covered, additional coverage may be needed.

What are the risks of solar panels?

While solar panels are generally safe, there are some potential risks of damage that homeowners should keep in mind:

  1. Fire: The risk of fire from solar panels is low, but it can increase due to factors like faulty wiring, aging components, or nearby flammable vegetation, like dried leaves, grass and plants.
  2. Improper installation: Poor installation may lead to roof leaks or structural issues. Try to hire certified installers to reduce this risk.
  3. Winter weather: Solar panels can change how your roof retains snow. Light snow may melt off, but heavy snowfall can accumulate and slide off in large sheets, causing damage to your panels or landscaping below. Installing snow pads or guards may help prevent this.
  4. Animal activity: Birds, squirrels and other wildlife nesting under the panels can potentially damage the wiring, creating fire hazards that may harm not only the panels and roof, but also the home itself. Installing equipment like critter guards may help keep animals away.

By staying informed of potential risks, paying attention to any recalls and taking preventive measures, you can help ensure that your solar panels remain a safe and effective addition to your home.

Will installing solar panels increase your premium?

If you're unsure about installing solar panels, one of your concerns might be the impact on your homeowners insurance premium. Solar panels and homeowners insurance are closely linked, as adding a solar panel system to your home may require adjustments to your policy. To cover the cost of the solar panel system, you may need to raise your coverage limit – the maximum amount your policy will pay for a covered loss. This could lead to a higher premium, depending on how much coverage you add.

Steps to ensure adequate coverage for solar panels

If you already have solar panels or are planning to install them, take some time to review your homeowners insurance coverage to see if it covers a solar energy system. Check whether it protects against damage, malfunctions or other liabilities, and be sure to regularly review your home insurance policy as time goes on.

If you have any questions, you can also speak with one of our knowledgeable customer service representatives. Call today 833-513-3881.

Get a home insurance quote

or call 833-513-3881

Your Policy, Policy Declarations or Amended Declarations in effect on the date of loss is the primary source of reference for your coverage, coverage limits and deductible amounts.

This inclusion of non-Amica companies, products, services or statement herein (“Third-Party Content”) is for general informational purposes only and does not constitute a recommendation or endorsement by Amica Insurance. Policies, views, opinions or positions of Third-Party Content expressed herein are those of the authors and do not necessarily reflect the policies, views, opinions or positions of Amica Insurance. Amica Insurance makes no warranties, expressed or implied, as to the accuracy and reliability of Third-Party Content.

This content may contain helpful tips, explanation and advice. Your use of this information is voluntary and may not be effective in every circumstance. Amica encourages you to use good judgement and put safety first.

For more information on our editorial process and content standard, take a look at our editorial guidelines.

 

AMIC-01-012125