The time has come to answer a common question many folks have about investing in solar energy for their home when it comes to solar panel insurance. Many homes throughout Southern California have solar panels that have seen significantly reduced electricity bills by generating their own power from the sun. And as we all know, solar panels can increase your home’s value, making it a valuable investment, but will your solar panels be covered by your homeowners insurance or will you have to get solar panel insurance? Let’s dig in, shall we!
Most Homeowners Insurance Covers Solar Panels
Yay! Good news, right? When you attach solar panels to the roof of your home, it is generally considered to be part of your home under most plans. Why is this good news? Because you won’t have to worry about any kind of add-ons to your existing home insurance plan. This means it won’t change your plan, and won’t increase your premium. While this tends to be typical, it’s important to remember that not all insurance policies are the same. You should still reach out to your insurance company and talk to them about installing solar panels on your home. The chance is high that you’re covered, however, here are some things you need to know:
You May Want to Increase Your Homeowners Coverage Limit for Your Solar Panels
Should you experience a loss of your home (*knocks on wood*), the coverage limit for your policy is the most the insurance company will pay to cover it. Considering the average cost for solar panels in the state of California is anywhere between $20,000-$35,000 (for an average size installation in the United States, it can cost roughly between $12,000-$15,000) you may want to consider raising your coverage limit so you can be confident that you’re covered should something happen (*knock on wood, again*).
How You Chose to Finance Your Solar Panels Can Impact Your Insurance Policy
Depending on whether you lease or buy your solar panels can make a difference in your insurance policy. If you chose to lease your panels or use a PPA (power purchase agreement), you do not OWN your solar system. The company in which you have your solar panel agreement owns them and they are typically in charge of maintaining the panels for you. Therefore, you don’t need to worry about ensuring your solar panels are covered under your existing policy. It’s important to pay close attention to the contract you sign for a lease or PPA and make sure your panels are covered should something happen (*we’re going to go ahead and knock on wood again for ya*).
If Your Panels are Damaged During Installation, This May Not Be Covered by Your Homeowners Policy
When you reach out to your insurance company regarding your solar panels, it’s important to ask if the coverage they offer also includes any damage that may happen during the installation process. If you’re using a reputable and qualified solar installation company, like Sun Energy California, a workmanship warranty is typically offered that will have you covered should any damage occur during the installation process, whether that be to your roof or the panels themselves. We here at Sun Energy CA do things a little differently than our competitors. We guarantee our work for 10 years after installation by offering a 10-year workmanship warranty on top of the 25-year manufacturer warranty. We also cover parts & labor. So, if anything goes wrong, we’ll fix it. Pretty sweet, huh? *Hair Flip*
Not Every Solar Panel is Created Equal
While exploring the process of going solar for your home, we recommend asking solar installation companies what options they have when it comes to the type of panels they offer along with the panel manufacturers. You can find that information for Sun Energy California here.
Quality solar panels maintain a level of durability that is tested by the manufacturer in regard to actual weather conditions like heavy snow, high winds (which we know plenty about here in California, am I right?), and hail.
And, as mentioned earlier, take the time to ask questions to make sure that the company you decide to do business with offers a workmanship warranty. This proves that the company is confident in their work and stands behind what they do.
Thinking of Going Solar?
If you have questions about going solar, please don’t hesitate to reach out to us here at Sun Energy California. We take pride in our ability to provide our customers with the information they need to make the best decisions for their families. We also offer free consultations and estimates so don’t be a stranger!
Call 760.545.8466 to speak to one of our solar advisors. We look forward to exceeding your expectations and saving you money!