Do I Need To Insure My Solar Panels?

After you have invested in your solar panels on your roof, you may have a few questions. Will your solar panels be insured under your homeowner's insurance policy? Will you need to purchase more insurance for your solar panels? The best way to find out is to call your insurance provider, but there are some general rules for whether your solar panels will be covered by your insurance.

You May Not Need Insurance

You may not need insurance at all. Most solar panels come with a 25-year warranty that will cover maintenance and replacement in the event that a solar panel breaks. Also, it is unlikely that your panels will need to be repaired or replaced since they do not have any moving parts, which makes them very resilient. 

Your Homeowner's Insurance Will Likely Cover Them

Most often, a homeowner's insurance policy will cover solar panels. Even if your solar panels are covered by your homeowner's insurance policy, you will want to make sure that your policy has enough coverage limits for the panels. A solar panel is a big investment, so if they become damaged, you will need the coverage to have them fully repaired or replaced. 

You May Need A Separate Policy

Depending on the type of solar panels you use, it may be necessary to purchase a separate insurance policy or an add-on. For example, your policy might not cover a ground-mounted solar panel. Depending on the size of your system, a separate policy might be warranted. 

Damage Caused By Installation May Require Separate Coverage

Find out whether any damage caused by the installation is covered. If it is not, you may want to purchase separate insurance in case the panels are damaged during the installation. Fortunately, most installers will have a workmanship warranty to cover any damage caused by the installation process. 

You Won't Need Insurance For Leased Panels

It is only necessary to purchase insurance for solar panels if you own them yourself. If you are leasing them or if they are installed under a power purchase agreement, the company that you lease the panels from will be responsible for maintaining them. Double-check with the company leasing the panels to ensure that they are covered.

Consider Raising Your Dwelling Protection Limits

After purchasing solar panels, you may want to review your dwelling protection limits as well. Firefighters may have a more difficult time fighting a fire in a building that has had solar panels installed since the panels will continue to generate electricity, which can pose an electrocution risk. This will hinder firefighting efforts. 

For more information, talk to a professional like SMA Hub.

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