Homeowners across the country are adding solar panels to their properties, hoping to cut energy costs and increase property value. But before flipping the switch, it’s important to understand how solar panel insurance fits into the picture.
Whether panels are mounted on your roof or elsewhere on your property, they can impact your home insurance coverage—and your premium. If you’ve already installed solar or are considering it, this guide will break down what you need to know about protecting your investment.
What Is Solar Panel Insurance?
Solar panel insurance typically refers to the coverage provided by your homeowners policy that protects your solar energy system from damage. In most cases, if the panels are permanently attached to your home—like roof-mounted systems—they’re considered part of the dwelling and are covered under the standard policy.
However, not all solar setups are the same. Ground-mounted panels, solar carports, or systems not directly attached to your home might require additional coverage. That’s where a closer look at your policy—and a conversation with your agent—comes in.
Because the value of your home increases with solar upgrades, updating your policy to reflect that change is a key part of having the right solar panel insurance in place.
Do Solar Panels Increase Home Insurance Premiums?
Adding solar panels can impact your home insurance premium, but not always in the way people expect. Since the panels raise the overall replacement cost of your home, your insurer may adjust your premium to reflect that added value.
The size of the system, installation method, and total cost to replace the panels all factor into the new premium calculation. Roof-mounted systems are usually treated as part of the structure, while freestanding units may be categorized differently.
This is where solar panel insurance becomes important. Without updating your policy, you could be underinsured if a storm, fire, or other covered loss damages the panels. Taking the time to review your coverage after installation can help you avoid surprises if a claim ever needs to be filed.
Coverage Gaps and Solar Panel Add-Ons
Not all homeowners insurance policies automatically cover every part of a solar energy system. While roof-mounted panels are usually included under dwelling coverage, other components—like inverters, battery storage, or ground-mounted arrays—may not be. That’s where solar panel insurance becomes more than just a policy detail; it’s a financial safeguard.
In some cases, your insurer might suggest a policy endorsement or equipment add-on to fully protect the system. This is especially important if your setup includes backup batteries or if your panels are installed in a way that’s not directly tied to the home’s structure.
It’s also worth checking for any exclusions in your policy related to alternative energy equipment. Gaps like these can leave you paying out-of-pocket after a covered event—unless your solar panel insurance addresses those specific risks.
Claim Considerations: Damage, Theft, and Weather Events
Solar panels are designed to withstand the elements, but they’re not invincible. Hailstorms, fallen trees, fire, and electrical surges are all risks that can lead to costly repairs or full replacements. That’s why it’s important to understand how your solar panel insurance responds when something goes wrong.
If your panels are damaged during a covered event, your insurance company will typically treat them as part of the dwelling and include them in the claim—assuming they’re attached to the home. Ground-mounted systems or detached arrays might fall under other structures or even require scheduled equipment coverage.
Theft is another concern. Though not common, solar panel theft does happen, especially in areas where systems are more accessible. With the right solar panel insurance in place, stolen equipment can be covered just like any other part of your property, provided it’s listed appropriately on the policy.
Proper documentation—photos, receipts, installation details—can also speed up the claims process and help avoid delays or disputes.
How to Talk to Your Insurance Agent About Solar Panel Insurance
Before or after installing a solar system, it’s a smart move to speak with your insurance agent about how it might affect your policy. Bring up solar panel insurance directly, and ask how your current coverage applies to the system you’ve installed or are planning to install.
Be ready to share details like:
- Whether the panels are roof-mounted or ground-based
- Total system cost and installation date
- Any added equipment like batteries or inverters
You can also ask if any endorsements are needed or if your current dwelling coverage is high enough to include the full value of the system. Some insurers may request documentation or proof of installation from a licensed contractor.
This conversation helps confirm you’re not missing anything important—and that your solar panel insurance is set up the right way from the start.
Solar panels can be a smart investment for your home, but they also bring new considerations for your insurance coverage. Whether you already have a system in place or are just starting the process, reviewing your policy is a key step.
Solar panel insurance isn’t always a separate policy—it’s often part of your homeowners coverage—but it still needs to be accurate and up to date. From equipment protection to potential premium changes, knowing where your coverage stands can help you avoid costly surprises later.
If you’ve recently installed panels or plan to soon, take a moment to talk with your homeowners insurance agent. It’s the easiest way to make sure your solar panel insurance reflects the full value of your home and everything powering it.