Solar panels and your home insurance policy.
Adding solar panels is a big home investment, but it is also eco-friendly and can save you plenty in utility bills over the years. It is a big decision to make and it is wise to know if these expensive solar panels will be covered by home insurance.
Residential solar energy installations are typically covered as part of a home insurance policy. That means that, in many cases, covering your solar panels under your home insurance will not create the need for a special add-on. However, be sure to check with your agent to learn whether your policy provides coverage and to discuss variables, such as roof-mounted or ground-mounted panels, which may affect your coverage.
Your insurance policy’s coverage limit is the maximum amount that it will pay towards a covered loss. In 2019, the cost of an average 6-kilowatt solar panel system was $18,300 before tax incentives and rebates. This means that solar is an investment worth tens of thousands of dollars. While your solar panels are likely covered under your standard home insurance policy, you may want to talk to your insurer about raising your coverage limit. That way, you can be confident that you are covered for all possibilities.