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Most homeowners spend between $15,000 and $30,000 on solar panels. But what happens if a tree falls on them or a hailstorm hits? With that much money at stake, you need to know they're protected. Let’s walk through everything you need to know about insuring your solar panel system and how they're protected if something goes wrong.
Key takeaways
- Most roof-mounted solar panels are automatically covered by standard homeowners insurance, while ground-mounted systems typically require additional coverage.
- Adding solar panels will increase your insurance premium by approximately 10-20%, reflecting the added home value and replacement cost of the system.
- Solar warranties and insurance serve different purposes – warranties cover manufacturing defects and performance issues, while insurance protects against external damage like storms, fire, and theft.
Homeowners insurance does cover solar panels... in most cases
How long do solar panels last? Quite a whileGood news – you probably don't need to buy special insurance for your solar panels. Most regular home insurance already covers them. But before assuming you're protected, there are some important details to know.
Roof-mounted systems are normally covered
If your solar panels are attached to your roof, your regular home insurance likely covers them already. The insurance company sees them as part of your house, just like your roof or windows. Your home's existing coverage would kick in for repairs or replacements if the panels are damaged by covered perils such as fire, lightning strikes, fallen trees or branches, hail or wind, and theft or vandalism. Though check your policy carefully for exclusions.
Ground-mounted systems might be not
Here's where things get tricky. If your solar panels aren't attached to your house – like if they're mounted on the ground or on a detached garage – your regular homeowners insurance probably won't cover them. For these systems, you'll need to add extra coverage to your policy or buy separate insurance.
Some insurance companies think ground-mounted systems are more likely to get damaged by weather, animals, yard equipment, or vandals, and might not want to cover them at all.
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Is it better to buy or lease solar panels? Let’s compareSince solar panels increase your home's value by 4% on average, you may need to increase your insurance coverage as well. Your coverage should be enough to replace your entire home including the solar system if something major happens, not just pay you what the old system was worth.
Contact your insurance provider before or immediately after the panels are up and running. This gives you a chance to discuss exactly how your panels will be covered and what documentation they need from you to properly update your coverage. Waiting too long to update your policy could leave you with a coverage gap if something happens in those first few weeks. If you later upgrade your system with additional panels or battery storage, be sure to update your policy again.
Some insurers charge more for DIY installations because they see them as higher risk.
When you might need a standalone solar panel insurance
While most homeowners can get by with standard insurance, there are situations where specialized coverage makes sense. Your existing policy may have limitations that leave gaps in protection, especially for more complex or ground-mounted solar installations. You might need specialized solar insurance if:
- Your standard policy excludes ground-mounted systems. Many homeowners policies only cover panels attached to your roof, leaving ground arrays completely unprotected. A specialized policy ensures your investment is covered regardless of where you put your panels.
- Your panels are in an area with extreme weather risks. If you live somewhere with frequent hail, hurricanes, or severe storms that might not be covered by standard insurance, specialized coverage is important. These policies often protect against more types of weather damage.
- Your homeowners policy has high deductibles for claims involving solar equipment. Some standard policies make you pay your full home deductible, often thousands of dollars, before covering solar damage. Specialized policies often have lower, separate deductibles just for your solar system.
- You want more comprehensive protection beyond basic covered events. Standard policies typically only cover specific things like fire or theft. Specialized solar insurance often covers almost any kind of damage except for a few specific exclusions.
How to size a solar system for your homeTalk to an insurance agent who knows about renewable energy to decide if the extra cost of specialized coverage is worth it for your situation. The peace of mind from knowing your expensive system is fully protected is often worth the modest increase in your premium.
For leased systems, insurance works differently. The company that owns the equipment usually insures the panels themselves, but you remain responsible for liability coverage through your homeowners policy.
Solar panel warranties vs. insurance
Many homeowners mix up warranties with insurance protection. While both are valuable, they protect against different things. Warranties cover defects and performance, while insurance protects against damage from external events. Together, they provide complete coverage for your solar investment throughout its expected 25-30 year lifespan.
Product warranties
Most solar panels come with a manufacturer's warranty covering defects in materials and workmanship. These typically last 10-13 years and cover panel replacement if they fail due to manufacturing defects. These warranties require proper installation according to manufacturer specifications and may become void if panels are moved or modified after installation.
Performance warranties
Solar panels also come with performance warranties guaranteeing a certain level of electricity production over time. These warranties typically guarantee 80-90% of rated output after 25-30 years, protecting you against gradual degradation but not sudden damage. They may provide compensation if panels underperform, but usually require professional testing to verify performance issues. Note that performance guarantees don't cover external damage that affects production.
Installer warranties
Quality solar installers offer workmanship warranties covering proper installation techniques, roof penetrations and waterproofing, mounting system stability, electrical connections and wiring, and overall system functionality and commissioning. These warranties typically last 5-10 years and cover issues resulting from improper installation, but not damage from external forces.
If your installer goes out of business, their warranty may become worthless unless it's backed by a third-party insurer. This is why choosing an established, reputable installer with a solid business history is just as important as selecting quality panels.
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Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.
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