- Homeowners insurance may cover solar panels, depending on ownership, installation and policy terms.
- Leased, owned and ground-mounted systems can affect coverage differently.
- Solar panels can bring risks like fire, installation issues, snow damage and animal damage.
- Adding panels may raise your coverage needs and possibly your premium.
Does Home Insurance Cover Solar Panels?
While standard home insurance policies often cover solar panels, the answer often depends on how the system is installed and whether you lease or own it.
Key Takeaways
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 how solar panel insurance coverage may apply to your home and how the system could affect your policy.
Quick takeaway: Owned, roof-mounted solar panels may be covered under a standard homeowners policy in some cases, but coverage can vary based on how the panels are installed, where they’re located and the terms of your policy.
How solar panel installation affects your coverage
Solar panel insurance coverage often depends on two practical questions: who owns the panels and where they’re installed. Owned, leased, roof-mounted and ground-mounted systems may be handled differently.
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, up front 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. In many situations, solar panel insurance coverage is more straightforward when the panels are owned rather than leased.
Roof-mounted vs. ground-mounted solar 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 your policy will 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.
| Solar panel setup | Coverage consideration | What to confirm |
|---|---|---|
| Owned, roof-mounted panels | May be covered as part of the home, subject to policy terms | Whether your dwelling limit reflects the added value of the system |
| Leased, roof-mounted panels | Coverage may depend on the lease agreement and the provider’s policy | Who is responsible for damage, repairs and liability |
| Ground-mounted panels | May fall under other structures coverage | Whether your policy limit is high enough for detached structures |
Reviewing your broader policy? Explore your home insurance options for an overview of dwelling, other structures and personal property coverage.
What solar panel damage is and isn't covered
Understanding when solar panel damage is covered – and when it's not – can help you avoid surprises. In general, a standard homeowners policy may cover solar panels for sudden, accidental physical damage, such as:
- Falling trees or branches that strike and damage the panels
- Wind, hail or flying debris that cracks or breaks the panels
- Fire or lightning that damages the system
- Theft or vandalism of the panels or related equipment
- Animal damage (such as squirrels chewing through wiring), depending on policy terms
However, solar panel coverage does have limits. A standard homeowners policy typically does not cover:
- Mechanical breakdown or internal system failure
- Wear and tear over time, including gradual deterioration
- Poor installation or faulty workmanship, even if it leads to damage
- Normal weather-related buildup, such as leaves or debris that block the system
- Loss of energy production due to panel damage (lost electricity isn't considered property damage)
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:
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.
Improper installation: Poor installation may lead to roof leaks or structural issues. Try to hire certified installers to reduce this risk.
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.
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.
Is animal-related damage a concern for you? Find out if your insurance covers animal damage.
Will installing solar panels increase your insurance 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 home insurance 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 and be sure to regularly review it as time goes on.
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FAQs about solar panel insurance coverage
Home insurance may cover solar panels in some situations, especially when they’re owned and attached to your home, but coverage depends on your policy terms, limits and exclusions.
Solar panel insurance coverage refers to how your homeowners policy, or in some cases a leasing company’s policy, may respond if solar panels are damaged by a covered loss. It can also involve reviewing liability and property limits connected to the system.
Not always. Some leasing companies carry their own coverage, but you should review your contract carefully to understand who is responsible for damage, repairs and insurance-related costs.
Solar panels may affect your house insurance by increasing the value that needs to be insured, which can change your coverage limits and potentially your premium.
*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.
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