It is no secret that solar panels are becoming increasingly popular as an eco-friendly option to reduce energy bill costs. However, you must know about its insurance coverage under your homeowners insurance. Here is what you need to know about the different types of coverage needed for solar panels and how it may affect your homeowners insurance.

How Does Homeowners Insurance Cover Solar Panels?

Homeowners insurance typically covers damage to your home and its contents, including solar panels, from a variety of causes. This includes damage from fire, hail, and other weather events, as well as vandalism and theft. In the event of an insured loss, your insurer should cover the cost of repairing or replacing the solar panels, up to your policy limits.

It is important to note that not all homeowners insurance policies are the same, so it is important to read your policy carefully to understand the types of coverage available. Some policies may include additional coverage for solar panels, such as coverage for equipment breakdown or failure due to manufacturing defects.

Different types of solar panels are included in different coverages in your homeowners policy. For example, a roof-mounted solar panel may be covered under the dwelling coverage whereas panels that are mounted on detached structures or on the ground may be included in other structures coverage of your homeowners policy.

Do Solar Panels Increase Homeowners Insurance Costs?

It is unlikely that the installation of solar panels will cause an increase in your homeowners insurance premiums but you may need to increase the coverage limit to accommodate its replacement value in the event of damage from storms or other potential risk factors.

Also, there may be additional costs associated with the installation and maintenance of solar panels. Your insurance company may require you to purchase additional coverage for the solar panels, or you may have to pay a higher deductible in order to have coverage for the panels.

When Should I Purchase Separate Solar Panel Insurance?

Many insurance providers do not provide coverage or offer limited coverage for solar panels. In such a scenario, you must purchase separate solar panel insurance. Also, if you have a large number of solar panels, or if you are installing a more expensive system, it may be worth considering purchasing a separate policy for them. This will give you the peace of mind of knowing that you have the coverage you need to replace or repair the panels in the event of damage.

It is also worth considering purchasing solar panel insurance if you are leasing your solar panels from a third-party provider. This will ensure that you are covered in the event that the panels are damaged or stolen.

Do I Need Insurance Coverage If I Use Leased Solar Panels?

Even if you don’t own the solar panels, it is still important to have insurance coverage as your leasing company may require you to own one. Your homeowners insurance policy may also provide limited coverage for leased solar panels, so it is worth speaking to your insurance company to ensure that you have the coverage you need.

When it comes to coverage for solar panels in your homeowners insurance, it is important to read your policy carefully to understand the coverage that is available and to discuss any additional coverage you may need with your insurance company. This ensures that you have the coverage you need to protect your solar panels and your home.

Cover Your Solar Panels with Steve Wilk Insurance

If you need more information on home insurance policies, Steve Wilk Insurance can help. We are your trusted source for insurance advice, and we can help you find the right homeowners coverage for your unique requirements. Contact us today to get started.