Going solar is a big move for your home that can save you money, reduce your carbon footprint, and increase the value of your home. Solar panels are valuable investments that you will undoubtedly want to protect against risks. Naturally, many homeowners who are considering solar energy want to know if their solar panels will be protected by their home insurance policy.
This article will tell you everything you need to know about adding solar panels to home insurance and what steps (if any) you need to take.
Does Home Insurance Cover Solar Panels?
Many standard home insurance policies protect solar panels against risks. However, you must call your insurance firm to inform them that you have added solar panels to your home after the installation. The insurer can update rates or notify you of the coverage limit you enjoy under your home insurance. For instance, the insurer could say 10% of your home insurance covers solar panels.
Insurance firms may need extra coverage for solar panels, not on the roof. Insurers often argue that solar panels on the roof are safer than those on the ground. Ground-mounted solar panels can be classified as “other structures” so you may need to purchase extra coverage.
Some home insurance policies do not cover solar panels from accidental damage. When it happens, you have to dig into your pocket to replace the solar panel. Purchasing accidental damage protection protects your investment against unwanted events. Contact your insurer to find out if coverage against accidental damage is included in your present policy.
How Solar Panels Affect Home Insurance
The cost of solar panels impacts home insurance. The average price to install solar panels in America is around $12,000. California comes in at a higher average of $14,000. After installing the solar panels, the insurance rates depend on your coverage. If your insurer considers the investment part of the house, you may not pay more for insurance. Nonetheless, the insurance company may need to spend more money on compensation if the insured risk happens. Thus, your insurance provider may increase your rates to cover solar systems.
Adding Solar Panels to Home Insurance
After installing solar panels, you must add the investment to your home insurance. Home insurance covers solar panels installed on the roof. If your solar panels are not installed on the roof, you may have to buy extra coverage. Installing solar panels can increase the cost of home insurance. Insurance firms add insurance rates because of the higher risk caused by solar panel installation.
Another important step you can take to protect your solar panels is to ensure they are covered by a warranty. Solar panel warranties will provide coverage against manufacturer defects that your homeowner’s insurance will not.
At Solar Optimum, we offer an industry-leading 25-year warranty package that covers your panels, inverter, performance, racking, workmanship, and roof. Contact us today for expert solar panel installation, home battery storage, and roof replacement services.