Solar, Home, Insurance, and other Relevant Experts: are solar panels covered By home insurance?

Most home insurance policies treat roof-mounted solar panels as part of the dwelling, which simplifies coverage under the primary policy limits. However, in my experience, it's crucial to verify that these limits are sufficient. For example, if a home is insured for $250,000 and the solar panels add $20,000 in value, the homeowner might face a shortfall if total damages exceed the coverage limit. Adjusting the policy to reflect the home's increased value can save thousands during a claim. For systems installed on detached structures, the coverage tends to fall under "other structures" protection, typically capped at 10% of the dwelling limit. This means for a $300,000 home, you're looking at $30,000 of coverage, which may barely cover the solar panels, let alone any structural repairs. In my opinion, adding a rider or endorsement specifically for solar installations is a worthwhile step. I've seen clients who invested a few hundred dollars in enhanced coverage avoid paying tens of thousands out of pocket after severe weather damage. Ensuring full coverage is a simple but highly effective way to protect such a significant investment.

Having worked with several solar companies, I can tell you that in most cases, solar panels are covered by home insurance, but this depends on the terms of your policy. Issues like damage due to improper maintenance or installation may not be included. Coverage can differ between solar providers and from one place to another, so it's always a good idea to consult your insurer for the most policy details and any endorsements specific to solar systems.

Many home insurance companies offer coverage for solar panels as part of their standard homeowner's insurance policy. However, the specifics can vary depending on the insurer and the state you live in. For example, in states like Florida, insurance coverage for solar systems is often a requirement before you can complete the installation or purchase of solar panels. This means that, before installing a solar energy system, homeowners may need to ensure their insurance policy explicitly covers the solar panels in case of damage or loss, as this coverage is typically necessary for financing or rebates as well. Happy to provide more context. My email is: walid.halty@monalee.co