Are Solar Panels Covered By Homeowners Insurance?

Pre-tax, the Center for Sustainable Energy says that the cost of installing a solar energy system on a rooftop can be anywhere from $15,000 to $25,000. Some people might not be able to afford to pay for a new system if theirs is broken. It could be very important for you to get insurance to protect that investment in the event of a storm or other disaster.

It's becoming more and more important to more and more people every year. Reports from the Solar Energy Industries Association show that residential solar energy has grown by 68% every year over the last decade. The following are things you need to know about insurance and solar panels for your home.

Take Out Solar Panel Insurance

Most homeowners insurance policies cover solar panel damage, so there is no need for separate solar panel insurance. Solar energy systems and the panels or tiles on your roof are usually seen as permanent parts of your home, like a patio or a security system. Many policies don't cover damage to these attachments from a specific threat, like the wind.

If You Need To Change The Amount Of Money You Can Claim, Do So

Another thing to keep in mind about solar panel insurance is that there may be no limit on how much you can sue for. There is a limit on the amount of money your insurance company will payout for a claim. Like a shed or gazebo, a separate structure may not be covered by the same type of policy. A claim limit may be 10% of the dwelling limit in this case.

For people who have solar panels, that's a big advantage. Keep in mind that it is important to check your policy to make sure you have enough money to pay for repairs or a new home, including the cost of a solar power system. You should also know how much money you'll have to pay before your insurance starts. Talk with your agent if you think you should raise your coverage limit.

Make Sure You Know If You Need A Separate Policy For Your Home

It doesn't change your insurance plan if you have a rooftop solar energy system because most of them are covered by standard homeowners insurance policies. You may need to raise the amount of coverage on your home to account for how much it costs to run the system. This can then raise your insurance rate. Not every policy or solar energy system is the same, so it is important to know that.

In some cases, you may need to buy an extra policy or add-on for certain systems, like solar carports or ground-mounted solar panel systems. It all goes back to what kind of policy you have. These different types of systems may or may not be covered. If your system is big enough to need its insurance, you may be able to get a separate policy or add-on rider to your current policy.

Solar panel systems can be a good investment because they can cut your electricity bill and increase the value of your home at the same time. Protecting that investment with the right homeowners' insurance can help ensure you're covered if something goes wrong.