By: Scott Elkind, Chief of Litigation Strategy
ARE YOU COVERED?
If you own your solar panels
Most insurance companies cover solar panels as they are affixed to your home and are considered a permanent attached part of your dwelling. Unfortunately, some insurance companies require additional riders to cover solar panels. Worse yet, more companies are refusing to insure solar panels at all.
Even if you have solar panel coverage, you should verify that you have sufficient levels of coverage to cover the cost of home damage including the increased value due to solar panel installation.
Some insurance companies will make you take out an additional policy to cover solar panels installed on carports or which are ground-mounted.
If you lease your solar panels or have power production agreement
Damage to these panels is usually insured by the solar company as they own the panels.
WHAT DAMAGE TO YOUR SOLAR PANELS DOES HOMEOWNER’S INSURANCE?
Typically, homeowner’s insurance will cover the following damage:
- Damage from hail, wind, fire, and fallen tree limbs
- Theft or vandalism
- Accidental damage that affects system performance
- Fires/electrical faults caused by the solar panels
The following damage is generally not covered:
- Wear and tear (gradual deterioration)
- Manufacturing defects (usually covered under solar contract warranty)
- Damage due to improper installation (usually covered under solar contract warranty)
- Damage during maintenance or removal/reinstallation
- Poorly maintained solar panels
- Pest damage