With any important investment or asset, we all know the importance of protecting our valuables with proper insurance coverage. Well, as you can probably assume, the same rule should apply to your rooftop solar panels investment. Think about it, your upfront cost typically ranges between $25,000 and $35,000. With an investment like that, there is no reason you shouldn’t be considering insurance coverage. Without insurance, even if a small part of the structure gets damaged, you may have to go for a complete replacement…which means another $25,000 – $35,000. No one wants to undergo that!
For example, what if you live in a hurricane-prone state like Florida and you have no insurance on your solar panels? It would only be natural for you to be concerned about the safety of your solar investment. If you’re thinking about investing in solar panels, or already have them on your home, fear not because what many do not know is that you can utilize your homeowners’ insurance policies to cover your solar panel structures against any damages, according to the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL). This is because all the parts of a solar energy installation, including the arrays installed on the roof, are considered a permanent part of your home.
However, this is something that many people do not consider or even think about when installing solar to their home, which is why we at Fun in the Sun are here to help you today. So, we’ve put together a solar homeowner’s guide to choosing the right insurance policy.
Insurance Policy Guidelines
For starters, it’s important to know that solar panels can and will affect the cost of your home.
Will My Solar Panels Be Covered By My Home Insurance?
This is one of the first things to look into. If you are considering the option of embracing solar, first review your homeowners’ policy to figuring out whether or not it provides adequate financial coverage for your solar panels. Most home insurance policies do cover rooftop solar panels.
Do Solar Panels Increase My Insurance Premium?
Installing solar panels is a lot of money to invest in your home. This is why we recommend increasing your coverage limits to make sure your homeowner’s policy protects those new solar panels. However, it’s important to remember the higher your coverage limits, the more expensive your insurance premiums are likely to be. But you want your solar panels to be covered, so this is a financial investment you have to be willing to take.
Look Into What Your Insurance Will Cover
Sometimes your insurance will not cover certain disasters. For example, floods and earthquakes are usually not covered under standard home insurance policies, so if you live in a place that is prone to these natural disasters we highly recommend looking into add-on coverage. It’s important to check with your insurance provider to see what your standard home insurance will cover and then see if you need to consider any add-ons.
The only way to know and gather all of this information is to speak with your insurance agent. At Fun in the Sun, we recommend discussing your plan, options, and coverage before scheduling any solar installation in your home.