So, you’ve decided to make your home more eco-friendly. Congratulations! You’re on your way to saving money and saving the planet. However, you may have a few remaining questions. Namely, you’re likely wondering if solar panels are covered by homeowners’ insurance. 
Rooftop solar energy panels can cost anywhere between $15,000 and $25,000, according to the Center for Sustainable Energy. That’s no small price tag.
The good news is that solar energy and solar power are usually covered by homeowners insurance.
Solar panels are covered by the typical homeowner’s insurance policy against standard risks such as fire, wind damage or theft, according to the U.S. Department of Energy.
But to make sure, you’ll want to talk to your agent for specific details on your coverage. It’s not always as easy as a quick phone call, however.
Thankfully, we’ve put together a few steps to get the information and coverage you need.
If you want to know the specific coverage provided by your homeowner’s insurance policy, check with your agent for an explanation of coverage. You may need to increase your limits of coverage to make sure you have enough to replace your solar panels if they are damaged or stolen.
Know what you’re installing.
When you speak to your agent, they will probably need a few details about what you’re installing. You’ll most likely need to relay the type of installation you’re using. Are your panels roof-mounted or on the ground? Are they just on your home or are they on your garage or other areas, as well? These different systems may have different types of coverage and it’s key to make sure you have all the details from your insurance agent.
You may want to ask your agent about regulations and restrictions, too. It’s possible you’ll need a separate permit before you install panels. There may also be codes to adhere to. Again, providing your agent with as many details as possible will help prevent any violations.
Check your deductible and limits.
Make sure you check your deductible for your homeowner’s insurance as well. The deductible is the portion you pay before your insurance company makes any payment toward a claim. It’s important to know your deductible whether you have solar panels or not.
You will also need to check your insurance limits. Your policy’s limit is the maximum amount your insurance will pay if you face damage. The cost of a solar panel system is generally high. The average home system is around $16,860, according to EnergySave.com. This means that if your system is damaged, replacement or repairs may cost thousands of dollars. You’ll want to make sure your limit can cover this, or you may want to opt to raise your limit.
Add optional solar power coverage.
As stated before, most home insurance plans cover solar panel insurance. For these people, this means no separate insurance is needed since under these plans solar panels are considered a part of your property. However, not all policies may cover panels or some insurance may only cover some instances. Some policies exclude certain damages, such as wind or hail.
If your home insurance does not cover solar panels or if coverage is minimal, you may want to opt for extended coverage. Additionally, some advanced systems may require add-on coverage. Carports and ground-mounted panels may require this add-on coverage.
Choosing to go solar is a wise financial decision, and more and more people in the U.S. are going for it! It is becoming cheaper than ever before to have solar panels installed, and the federal solar tax incentive can help you save up to 30% on a solar installation. Not only will you save money on your tax and energy bills, but you are helping the environment. Solar is a renewable and clean source of energy to power your home.
Going solar is a big step. Make sure you have all your bases covered with the proper homeowner’s insurance in place to protect your solar panels.