Does home insurance cover solar panels?

How homeowners insurance can cover solar panels

If you have roof-mounted solar panels, dwelling coverage on your homeowners policy may pay to repair or replace them if they're damaged by certain covered perils. Damage caused by wind and hail typically may not be covered, depending on your policy.

Depending on your insurer or policy, solar panels that are on top of a detached structure or aren't attached to your home, such as ground-mounted panels, may be covered by your homeowners insurance under other structures coverage. Some insurance companies may allow you to add coverage for detached solar panels to your homeowners policy as a rider or endorsement.

Are there exclusions on coverage for solar panels?

Your homeowners policy may exclude coverage for improper installation, damage caused by wear and tear, and, in some cases, wind and hail.

If your insurer doesn't provide coverage or provides limited coverage for solar panels, then you may be able to purchase separate solar insurance from a provider specializing in solar systems.

Do you need insurance coverage if you don't own the solar panels?

If you lease your solar panels, you may not need to insure them yourself as some leasing companies carry their own insurance for the panels. However, other leasing companies may require you to insure them, either through your homeowners insurance or a separate policy offered by the leasing company. Whether you buy or lease your panels, you should always tell your insurance company that you've installed solar panels on your home.

Do solar panels increase the cost of homeowners insurance?

You may see an increase in your cost for homeowners insurance after installing solar panels on your roof. Your insurer may raise your dwelling coverage or other structures coverage limit to account for the replacement cost of your solar panels. Because they're placed outdoors in elevated areas vulnerable to severe weather, they're at a higher risk of damage.

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