Are Solar Panels Covered?
Yes, in most cases. Standard homeowners insurance policies typically cover solar panels as part of your dwelling (if roof-mounted) or other structures (if ground-mounted).
Does Solar Increase Premiums?
Often no, or only modestly. Many insurers don't increase premiums for solar systems under $15,000-$20,000. For larger systems, you may need to increase dwelling coverage, resulting in a small premium increase ($50-150/year).
Example: A $20,000 solar system might increase your dwelling coverage from $300,000 to $320,000. At $3.50 per $1,000, that's only $70/year extra — far less than your monthly solar savings!
What Perils Are Covered?
| Peril | Covered? |
|---|---|
| Fire | ✅ Yes |
| Wind / Hail | ✅ Yes (may have separate deductible) |
| Lightning | ✅ Yes |
| Theft / Vandalism | ✅ Yes |
| Flood | ❌ No (needs separate flood insurance) |
| Earthquake | ❌ No (needs separate earthquake insurance) |
| Wear & tear | ❌ No (maintenance issue) |
Steps Before Installing Solar
- Contact your insurance agent: Ask if premiums will increase and if you need to increase coverage.
- Review coverage limits: Ensure your dwelling coverage is enough to rebuild your home + replace solar.
- Shop around: Some insurers are more solar-friendly than others. Top options: USAA, State Farm, Liberty Mutual.
- Notify after installation: Send your insurer the contract, photos, and warranty documents.
Filing a Claim
If your panels are damaged:
- Document damage with photos/videos (hire a pro for roof access)
- Contact your insurance agent
- Meet the adjuster and provide documentation
- Get repair estimates from licensed installers
- Review the settlement offer carefully
Solar Leases and Insurance
If you lease your panels, the leasing company insures the equipment — not you. However, you should still notify your homeowners insurer about the installation.
Important: Flood and earthquake damage are NOT covered by standard policies. If you live in a flood zone or earthquake area, purchase separate coverage.
Conclusion
Solar panels and homeowners insurance can coexist peacefully. Contact your insurer before installing, document your system, and enjoy solar with peace of mind.