Personal Insurance

Do solar panels impact your homeowners’ policy?

By February 9, 2019 April 9th, 2019 No Comments

Whether you like living green or saving green, solar panels can possibly help with both. Considering how relatively inexpensive and popular these additions are becoming, some experts even think solar panels may soon be as common as AC units.

Still, they’re not the right choice for all homeowners. Here are a few critical questions to ask before you commit.

Does my homeowner’s policy cover solar panels?

Most likely, yes. Most insurance plans consider solar panels a permanent part of your home once they’re installed. However, there may be additional insurance costs to consider depending on the particulars of your policy and where the panels are located.

Do I need any additional coverage?

Covering new solar panels under your standard homeowner’s policy usually negates the need for an add-on or rider. That is unless the solar energy system is installed at the ground level or other area detached from your home. Regardless, it’s a good idea to check in about potentially increasing your coverage limit.

Will my premium go up if I add them?

The short answer is, it depends. But since your replacement costs are changing with the addition of solar panels, you could likely see your premium increase.

Are there any drawbacks?

As with any home update, some risks may not be covered by insurance, including damage during the installation process. Solar panels also present challenges in the event your home ever catches fire, as they could make it difficult for firefighters to access and extinguish the blaze.

In the end, every individual homeowner’s policy is different. Have questions? Reach out anytime to discuss your needs and priorities.

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