In the interest of saving money or being more environmentally friendly, an increasing number
of people are installing solar panels and making use of the sun’s free energy production.
However, installing solar panels can be a double-edged sword when it comes to your
A standard homeowner’s policy will typically cover solar panels if they’re damaged. You will
need to increase your coverage limit to cover repair or replacement costs, which are expensive.
That will mean an increase in your premiums. They’re considered a permanent attachment
when mounted on the roof, similar to a balcony or security system.
Ground-mounted solar installations may require a separate policy or rider on your existing
homeowner’s policy. The same is true for those mounted on a garage or carport. Much will
depend on the insurer and the language in your policy. The potential for damage from
hurricanes, tornados and hail is so great that some insurers completely exclude coverage for
solar panel damage.
An increasing number of solar panel companies are offering leasing agreements. It eliminates
the need to pay huge up-front costs for purchasing and installation. Leasing agreements often
include insurance on the panels to protect the company’s investment. The carrier of a
homeowner’s policy may limit coverage or refuse to cover the panels if they’re insured by the
leasing company, since you don’t actually own the panels.
Anyone considering installing solar panels should check with their insurance agent first. He/she
will be able to tell you if solar panels are covered, under what circumstances, if a separate
policy is required, and how much insurance costs will be affected.
Pay equal attention to the terms of any lease agreement. Find out if the panels will be installed
on the home or be ground-mounted, if the company provides insurance, the cost of that
coverage, and if it’s billed separately or included in the total cost.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
We can be found on Social Media at the following links.
The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487